UK Passes Bill That Recognizes Crypto As Regulated Financial Activity

June 30, 2023 12:18 am Comments

The UK has just passed a new bill that essentially recognizes crypto as a regulated financial activity which is a huge milestone for the industry.

Now that it is regulated, this will give institutional investors more confidence to get involved which will ultimately mean new capital entering the market.

The government shared that it sees crypto as essential to its vision of growing the economy and taking advantage of the technological benefits that come with it.

The news is seen as a very bullish sign for digital assets and many are trying to understand when the same will happen for other countries within the EU. reports:

The UK has officially passed a bill that recognizes crypto as a regulated financial activity within the country and represents a vital development.

Specifically, the bill grants regulators the power to govern crypto and stablecoins at a massive turning point. Indeed, the final step of the legislative process was the royal assent, which took place on Thursday.

A Royal assent is the procedure necessary for legislation to pass into law within the country. Moreover, the development has now made the Financial Services and Markets Bill an Act.

It had been approved by the Chamber of Parliament last week. Finally, King Charles approved the legislative action today.

It is expected that this will also help many businesses within the country as it gives another way for businesses and consumers to conduct transactions.

It did take a while for this bill to actually pass as it turns out that the bill was first introduced back in July of 2022, but it seems that the wait was worth it.

Besides declaring crypto as a regulated activity now within the UK, the bill also states that it will allow multiple government authorities to enforce regulatory rules on the crypto industry.

This is seen as positive as no one single entity is able to control or regulate the industry entirely which is different from many other regions in the world.

FXStreet concludes:

Following the approval, the United Kingdom has joined the European Union in spirit, as the bloc was one of the first major administrations in the world to bring crypto under the scope of regulations.

The EU Markets in Crypto Assets (MiCA) bill paved the way for other governments to bring regulations at a large scale, allowing crypto development at a rapid rate.

While the EU law is set to come into effect next year, the influence of the same can already be seen. Earlier this week, German software giant SAP chose stablecoin USDC (USD Coin) to test cross-border payments to solve the challenges faced by businesses when sending money beyond their borders.

This puts the UK ahead of the United States, which is still years away from adopting regulations for cryptocurrencies, according to Securities and Exchange Commission (SEC) Chair Gary Gensler.

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