The United Kingdom is set to pass a new cryptocurrency bill to bring cryptocurrencies under the same rules applied to traditional assets. The bill, approved by the upper chamber of Parliament on June 19, 2023, is expected to give the Treasury, Financial Conduct Authority (FCA), Bank of England and Payments Systems Regulator the power to introduce and enforce regulations for crypto businesses.
The bill is still subject to Royal Assent, the final step required for a parliamentary account to become law. However, it is expected to be approved by King Charles on June 29, 2023.
The new law is seen as a positive step for the cryptocurrency industry in the UK. It will provide much-needed legal clarity and help to attract more investment and innovation in the sector.
Here are some of the critical provisions of the bill:
- Crypto assets will be treated as regulated, meaning that the FCA must authorize businesses that offer crypto services.
- Stablecoins will be brought into the scope of payment rules, requiring them to be backed by assets such as cash or government bonds.
- Crypto promotions will be subject to supervision, meaning businesses must be more transparent about the risks of investing in cryptocurrencies.
The new law is part of the UK government’s broader plan to make the country a global hub for crypto asset technology. The government has said it wants to “create a safe and supportive environment for crypto asset businesses to operate” and that the new law will “help protect consumers and businesses from fraud and financial crime.”
The new law’s passage is a significant development for the cryptocurrency industry in the UK. It will provide much-needed legal clarity and help to attract more investment and innovation in the sector. It remains to be seen how the new law will be implemented in practice, but it is a positive step for the future of cryptocurrencies in the UK.
Sources revealed that on June 19, 2023, the law was approved by the upper chamber of the UK parliament. It is expected that since July 2022, the financial services and markets bill has been discussed in the British Parliament. These strategies are expected to increase legal clarity and support the adoption of cryptocurrencies, Cointelegraph added.
As per Coin telegraph, the new law will give the Treasury, Financial Conduct Authority (FCA), Bank of England and Payments Systems Regulator the scope to introduce and enforce regulations for cryptocurrency businesses.