The UK has officially recognized cryptocurrencies as a regulated financial sector under the Financial Services and Markets Act 2023. Proposed as a bill, this development has made the Financial Services and Markets Act 2023 a valid law in the UK on Friday, 30 June. King Charles’ approval and royal assent have been sealed, which now brings crypto assets to the forefront of using them as tools to revitalize the UK’s existing financial system.
The UK is trying to compete with other pro-crypto countries such as Hong Kong, Nigeria and the UAE, who are also looking to establish themselves as crypto hubs.
“The Financial Services and Markets Act 2023 is central to delivering on the government’s vision of growing the economy and creating an open, sustainable and technologically advanced financial services sector. This includes new powers – available due to Brexit – that will pave the way for Solvency II reforms, unlock nearly £100 billion (roughly Rs. 10,36,8 crores) for productive investment and boost innovation and boost the economy. will help to increase. , official press statement Said by the UK government.
Despite its volatile nature, cryptocurrencies have managed to garner millions of community members around the world. The sector has also created many jobs.
According to data from Block Research, crypto-related employment is set to reach a figure of 82,200 in 2022, representing an increase of nearly 351 percent from 2019’s figure of 18,200. Claimed Last year.
With the crypto sector regulated, the UK is essentially getting ready to focus on all the growth and job opportunities that the industry opens up in fintech.
“Today’s unprecedented act increases the scrutiny of financial services regulators to ensure clear accountability, removes unnecessary restrictions on wholesale markets, protects free access to cash in law, and establishes a ‘sandbox’ that allows blockchain-like may facilitate the use of new technologies in the financial markets,” the release said.
There will also be a protection scheme for victims of push payment scams authorized under this Act to protect investors from financial risks.
“This prospective legislation, in pursuance of the following Markets in Crypto Assets (MiCA), aims to provide a robust regulatory framework that increases investor confidence and fosters innovation in the crypto sector. By establishing clear rules and guidelines, it fosters a more secure and transparent environment for crypto-related activities, attracting greater participation from investors and businesses in the UK,” Mudrex CEO and co-founder Edul Patel told Gadgets 360. told.
While this marks a landmark development for crypto adoption in the UK, it is not the first time that the country has expressed its support to the emerging financial institution.
british government legal stable coins Last year, the search was on for ways to empower local financial regulators with more authority over the crypto sector.