- The Financial Services and Markets Act (FSMB) 2023 has been approved in the UK, facilitating increased clarity in cryptocurrency regulations.
- The bill empowers UK’s HM Treasury to establish crypto regulations, making the country a leading jurisdiction for digital assets and crypto innovation.
Stepping boldly into the future of finance, the United Kingdom (UK) has enhanced regulatory clarity for cryptocurrencies with the final approval of a bill related to digital assets. The Financial Services and Markets Act (FSMB) 2023, as per recent reports, has been granted Royal Assent, marking its final step in the legislative process.
Regulating Crypto for Safe Adoption
The FSMB 2023 enables the creation of a regulatory framework that fosters the safe adoption of cryptocurrency in the UK. Furthermore, the bill provides power to the UK’s HM Treasury to establish regulations for cryptocurrencies, paving the way for a more transparent and secure digital assets market.
Teana Baker-Taylor, vice president for policy and regulatory strategy at stablecoin issuer Circle, applauded the passage of the bill. In a series of tweets, she explained the pivotal role this legislation will play in the UK’s crypto market.
She stated, “The UK’s Financial Services and Markets Bill has received Royal Assent, the final step for this major legislation, which brings stablecoins into the regulatory perimeter, designates crypto as regulated activity, and allows for the supervision of crypto promotions.”
She further elaborated that HM Treasury, the Financial Conduct Authority, and the Bank of England would continue consulting on the regulatory frameworks mandated by the FSMB. Andrew Griffith, the Economic Secretary to the Treasury, has indicated that rule-making could be introduced within 12 months, as it is a priority.
“This transformational legislation is a major step forward toward the UK becoming a leading jurisdiction for digital assets and crypto innovation. It establishes regulatory clarity for market participants, attracting investment in the UK,”
Baker-Taylor added, applauding Griffith’s leadership in driving this progressive legislation forward.
Circle’s CEO, Jeffery Allaire, whose company issues stablecoins USD Coin (USDC) and Euro Coin (EUROC), echoed this positive sentiment. He opined that the bill would result in clearer rules for stablecoins and the broader digital asset market, thus instilling confidence and promoting growth in this dynamic financial sector.