The Financial Services and Markets Act 2023 (FSMA), a reform law in the United Kingdom, received Royal Assent from King Charles on Thursday, June 29, 2023, officially making it an enacted legislation.
Under this new law, cryptocurrency trading is recognized as a regulated financial activity. The amended legislation defines crypto assets as digitally encrypted representations of value or contractual rights, treating them as regulated financial instruments, products, or investments.
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Royal Assent is a procedural stage that follows the legislative approval of a bill, transforming it into an Act of Parliament in the country. The bill had previously received approval from the upper house of Parliament on June 19 before reaching this stage.
The UK Treasury Department highlights that the purpose of this legislation is to regulate crypto assets and ensure their safe adoption in the country. The new law is seen as a significant step forward for the economy.
Andrew Griffith, the Economic Secretary to the UK Treasury Department, stated in a release that this important legislation provides control over the regulatory framework for financial services, supporting UK businesses and consumers while fostering growth.
“By repealing outdated EU legislation set in Brussels, it will unlock billions in cash investment that can fuel innovation and drive the economy,” Griffith said, July 12, 2023.
The Financial Services and Markets Act 2023 also lays the foundation for advancements in the blockchain sector, paving the way for the creation of a controlled ecosystem that facilitates the testing and adoption of new technologies like blockchain in the financial markets.