The United Kingdom passes a law recognizing cryptocurrency as a financial activity

With King Charles’ approval of the Financial Services and Markets Act (FSMB), the cryptocurrency sector has become a regulated financial activity in the United Kingdom.

The bill’s final sanction was announced on June 29, by A.J launch Issued by the Financial Services Authority (FSA).

In its publication, the body highlights the fact that it is with the new law Get to know the ecosystem of Bitcoin (BTC) and other cryptocurrencies as a vital part of the country’s development.

The goal, according to the post, is Support its use in the country. This, as “transparent supervision is guaranteed and unnecessary restrictions are removed”.

The bill, which was already approved by the House of Representatives last week, states that the Financial Conduct Authority, the Bank of England and the payment systems regulator They are responsible for developing and applying standards to regulate the sector.

In that sense, Treasury Economics Minister Andrew Griffiths said it was likely to be the rules for the sector Effective within the next twelve months.

As reported by CriptoNoticias, this body has carried out a series of public consultations since 2021 to find out the opinion of the various sectors and thus determine the rules to be applied. One of the main regulations that must be specified relates to method inclusion Stablecoins or stablecoins for payment systems.

In addition, the law determines performance sandboxes (sandboxes) as a way to test and identify practical applications, and to facilitate this as well The use of new technologies, such as the blockchain, in the financial markets.

In this sense, the publication highlights the importance of the Financial Markets and Services Act as a means of developing the economy and “creating an open, sustainable, and technologically advanced financial services sector.” All this, within the framework of the economic strategies that the government sets for the post-Brexit economy, the departure of the United Kingdom as a member of the European Union (EU) in 2020.

In connection with this, Griffiths considers that with this law it will be possible Enhancing the UK’s competitiveness as a global financial centre and provide protection and support to consumers and businesses. An idea shared by Prime Minister Rishi Sunak, although he is an outspoken supporter of central bank digital currencies (CBDCs).

The law gives us control of our financial services rulebook, post-Brexit, allowing crypto assets to be regulated to support their secure adoption in the UK.

Andrew Griffiths, Economic Secretary of the Treasury

Markets and Financial Services Law Introduced in July 2022. With it, the old EU laws that were in place in the UK before Brexit are being repealed. Regulators aim to develop their own rules to reassert their independence and increase control over their financial system.

After the law was passed, UK It joins the growing list of countries that have already established a regulatory framework for cryptocurrency. This, after the approval of the MiCA that will regulate the sector in 27 countries of the European Union.