The Financial Services and Markets Bill (FSMB) has gained the Royal Assent, signalling the United Kingdom’s (UK) active approach to strengthen its financial ecosystem.
The UK government has been constructing the Financial Services and Markets Bill for a while and with approval, it hopes that it will have a crucial part in knowing its goals of expanding the economy and developing a competitive, open and technologically advanced banking industry.
The FSMB offers a fairly clear roadmap for regulating digital currencies as financial products, to facilitate their secure adoption in the UK.
The requirement to publish operational legislation continues to be one of the most important issues in the US and the UK’s clear progress has ignited worries that the US may be lagging behind in adopting innovative technology.
The recently approved UK Bill is even more solid since it takes into account broader innovation that touches on blockchain technology.
The Bill that became the Act, in particular, “establishes ‘sandboxes’ that can allow the use of new technologies, such as blockchain in financial markets.”
According to Andrew Griffith, Economic Secretary to the Treasury, “2023 is proving to be a golden year for rewiring our financial services. This significant piece of regulation gives us authority over our financial services regulation, which supports UK companies and customers and promotes growth.
The British government is now providing a useful example for other countries wanting to govern the crypto environment by giving its consent to the Bill.
Now that the UK has a clear and defined mission to regulate digital currencies as regulated products, the UK appears to be among the G7’s most developed countries.
While the European Union is also making efforts in regulating cryptocurrency via its Markets in Crypto Assets (MiCA) policy, the UK is undoubtedly in the lead as implementation is expected to happen sooner.
This Bill is now the most significant step towards achieving Prime Minister Rishi Sunak’s ambition of making the UK a crypto hub.
