UK’s New Financial Law to Regulate Crypto, Includes Provisions for 'Crypto Hub'
The United Kingdom on Thursday
officially passed legislation to regulate cryptocurrencies and
stablecoins as part of its broader financial regulatory reforms post-Brexit.
The new law, dubbed
the Financial Services and Markets bill, will grant regulators the authority
to establish a tailored framework for the digital asset sector, supporting crypto’s
“safe adoption in the UK,” a press release from the UK Treasury said.
The bill
has been passed in support of the UK government's vision of transforming the UK
into a global crypto hub.
The new law comes
after the UK Treasury in February this year first announced that it planned
to "provide clarity to consumers and businesses."
At the time,
the idea was to regulate crypto in a way consistent
with how traditional finance is regulated, but this was later pushed back on by influential Members of Parliament
who instead wanted crypto to be regulated as gambling.
