A historical milestone was marked in the United Kingdom as a bill that allows regulators to oversee cryptocurrencies and stablecoins successfully passed, receiving the royal assent from King Charles on Thursday. This procedural act symbolizes the consensus of legislators and transforms the Financial Services and Markets Bill into law, incorporating measures to envelop crypto under regulatory scrutiny.
This act came into being in the aftermath of the U.K.’s departure from the European Union. Financial Services Minister Andrew Griffith expressed that this legislation “empowers the U.K. over its financial services rulebook”, making room for a safer integration of crypto assets in the U.K.’s financial landscape.
The proposed bill, introduced back in July 2022, aims to offer an expanded control mechanism over the financial markets and related crypto-assets. While the parliamentary sessions were in motion, alterations were implemented to treat any form of crypto as a controlled activity and monitor crypto promotions.
An exciting addition is bringing stablecoins under the radar for payment rules. Key financial authorities such as U.K. Treasury, Financial Conduct Authority, Bank of England, and the Payments Systems Regulator will soon wield the power to institute and enforce regulations within the sector.
The Treasury has been discussing its blueprint for sector-wide rules since February, an initiative that aligns with the Conservative Government’s ambition to metamorphose the country into a thriving hub for cryptocurrencies. However, many might question if such stringent regulation could stifle the innovative spirit of the crypto world.
According to Andrew Griffith, the Economic Secretary, we could expect the introduction of new, singular rules for the crypto field within the span of a year, as reported in his conversation with CNBC in April. Yet, this also raises the question of how globally-accepted these region-specific rules would be.
While this legislation might be seen as a targeted drive for securing financial interests, it might simultaneously elicit scepticism around its impact on the very ideals of decentralization and autonomy that the world of cryptocurrencies upholds. The coming months will indeed be a litmus test for this balance between control and innovation.
Source: Coindesk
