UK's landmark crypto, stablecoin bill signed into law

The UK has officially recognised crypto and stablecoins as regulated activity after King Charles assented to the Financial Services and Markets Bill (FSMB) into law.

On June 19, as reported here, the House of Lords – the upper chamber of the UK parliament – approved the FSMB, putting the bill one step away from becoming law. That step was the Royal Assent, a final stage of law making in the UK where a bill passed in parliament is officially signed into an Act.

Andrew Griffith, Economic Secretary to the Treasury, commented:

“2023 is proving to be a banner year for reforming our financial services. This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth. By repealing old EU laws set in Brussels it will unlock billions in investment – cash that can unlock innovation and grow the economy.”

Act gives regulators oversight powers

FSMB was introduced in July 2022, and sought to bring crypto under the realm of regulated financial activity. The bill also classifies stablecoins as part of the payments system. [Read more;]

Today, Thursday June 29, 2023, King Charles fulfilled the procedural duty that makes the Financial Services and Markets Act 2023 the guiding law for regulators. The Act, which included key amendments such as this during the debate, gives regulators like the Financial Conduct Authority supervisory powers over crypto and stablecoins in the country.

As well as the FCA, UK Treasury, Bank of England and the Payments Systems Regulator will have the powers to formulate and enforce key regulatory guidelines for the industry.

The U.K.’s Treasury, Financial Conduct Authority, Bank of England, and the Payments Systems Regulator will soon be able to introduce and enforce rules to regulate the sector. Rules around oversight of crypto as regulated activity are expected within the next 12 months.

UK’s landmark crypto law comes a month after the EU formally adopted its Markets in Crypto-Assets (MiCA) Act, which offers comprehensive crypto regulation. The regulation takes effect in 2024.