The United Kingdom Has Successfully Passed A Bill Acknowledging Cryptocurrency As A Form Of “Regulated Financial Activity”

The United Kingdom has joined the ranks of nations that have implemented official regulations for cryptocurrencies and digital assets.

Despite having a considerably smaller user base compared to the United States, this proactive step by Great Britain and Northern Ireland positions them ahead in terms of acceptance and regulation.

The bill gives regulators the power to supervise crypto and stablecoins, and was approved by King Charles overnight, marking the last formal stage that makes the bill law. 

After receiving royal assent, a procedural formality following approval from lawmakers, the Financial Services and Markets Bill has become an Act, incorporating provisions to regulate cryptocurrencies and stablecoins. The bill received the upper chamber of Parliament’s endorsement last week.

The bill, introduced in July 2022, grants regulators enhanced oversight over the financial system, including the realm of cryptocurrencies. During the bill’s parliamentary discussions, amendments were introduced to classify all crypto activities as regulated and to supervise crypto promotions. Furthermore, the bill will extend payment rules to encompass stablecoins.

During a recent interview, Andrew Griffith, the economic secretary to the U.K. Treasury expressed the country’s desire to harness the advantages of blockchain technology for the private sector and the economy. He emphasised that the ultimate goal is to enable businesses to fully leverage the opportunities presented by crypto assets through appropriate regulatory measures.

With the new legislation in place, the U.K. has the potential to serve as a catalyst for attracting a greater number of cryptocurrency firms, especially considering the stringent regulatory landscape worldwide. 

Andreessen Horowitz (A16z), a prominent venture capital firm, recently revealed its plans to establish its first office outside the United States in London. The decision was influenced by a “productive dialogue” with the U.K. prime minister and months of constructive discussions with policymakers and the Financial Conduct Authority (FCA). 

A16z’s crypto founder and managing partner, Chris Dixon, specifically highlighted the importance of a “predictable business environment” as a key factor contributing to the expansion of their operations overseas.

Big strides by the U.K. government here, is the US government falling too far behind? Is Australia?

Hopefully our government begins to make very similar moves.