Legislation for regulating crypto and stablecoins becomes law in the UK
The UK has passed a comprehensive law reforming post-Brexit financial regulations, which includes legislation to regulate crypto and stablecoins. The law gives regulators the power to create a framework for the digital asset sector, supporting the government’s aim to turn the UK into a global crypto-hub. The law also allows for regulatory ‘sandboxes’ for businesses to experiment with blockchain use cases and formalizes the treatment of stablecoins as a form of payment. The bill was amended to treat all crypto as a regulated activity and to give regulators supervision powers over crypto promotions.
Key points:
- The Financial Services and Markets bill has become law in the UK.
- The law gives regulators the power to create a framework for the digital asset sector.
- Regulatory ‘sandboxes’ will be established for businesses to experiment with blockchain use cases.
- Stablecoins are now formally recognized as a form of payment.
- All crypto will be treated as a regulated activity.
- Regulators will have supervision powers over crypto promotions.
Hot Take:
The passing of this legislation is a significant milestone for the UK as it solidifies its position as a leading crypto hub. By providing clarity and certainty for the crypto industry, the UK is attracting global crypto and blockchain companies. This law not only supports UK businesses and consumers but also drives growth and innovation in the economy. With control over its financial services rulebook, the UK is unlocking billions in investment and paving the way for a thriving digital asset sector.
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