Financial Services and Markets Act 2023 received royal approval from King Charles on 29 June, ushering in a new era for the UK financial services sector.New legislation includes cryptocurrency trading as a regulated financial activity in the UK
According to the Ministry of Finance, the law is central to the government’s vision of fostering an open, sustainable and technologically advanced financial services industry.
The legislation aims to tailor financial services regulation to the specific needs of the UK market, capitalizing on the opportunities presented by Brexit. It aims to strengthen the UK’s competitiveness as a global financial center while delivering improved outcomes for consumers and businesses.
Treasury Secretary Andrew Griffiths has declared this year to be a pivotal year for financial services reform in the country. He said:
“This groundbreaking legislation will put us in control of the financial services rulebook so we can support UK businesses and consumers and drive growth.”
In the midst of the FTX scandal, Griffiths urged the Finance Committee not to confuse the scandal with cryptocurrencies as a whole, saying the country would still seek opportunities in the tech sector under a “well-coordinated regulatory response.” added that it should.
A key aspect of this law is to enable cryptocurrency regulation to support the secure introduction of cryptocurrencies in the UK. It also provides for the establishment of “sandboxes” to promote new technologies such as blockchain in financial markets.
The law’s impact extends to increased oversight and accountability of financial services regulators. We focus on transparency, regular reporting, and cost-effectiveness analysis. These changes are aimed at boosting the growth of the UK economy and making it more competitive internationally.
CryptoSlate has published for the first time that cryptocurrency trading will become a regulated financial activity in the UK after the Financial Services Markets Act, which was granted the British Royal Consent by King Charles of the United Kingdom.