UK Crypto Legislation Approaching Final Passage: On the Way to Becoming Law

U.K. to Pass Cryptocurrency Regulation Bill

A bill which brings cryptocurrencies in line with the regulations applicable to traditional assets is set to be given the royal assent of King Charles on June 29th, thus making it a law in the United Kingdom after passing through the final stages of the parliamentary process.

The Financial Services and Markets Bill, which has been debated in the British Parliament since July 2022, was approved by the upper chamber of the U.K. parliament on June 19. It is anticipated that this bill will provide more legal certainty and facilitate the embracement of cryptocurrencies in the nation.

The Treasury, Financial Conduct Authority (FCA), Bank of England and Payments Systems Regulator will be granted the authority to implement and enforce regulations for crypto businesses under the new law.

The London Stock Exchange Group could potentially offer clearing services for Bitcoin derivatives in the fourth quarter.

U.K. Crypto Community Welcomes Regulatory Clarity

This legislation is a major step forward for the local crypto community. In a recent interview, Andrew Griffith, the economic secretary to the U.K. Treasury, expressed the country’s desire to take advantage of the advantages of blockchain in the private sector and economy, and that the long-term plan is to “allow companies to make the most of the opportunities from crypto assets” with the right crypto regulation.

The legislation might be the spark that brings more crypto businesses to the UK despite the strict regulatory environment worldwide. Recently, Andreessen Horowitz (A16z) venture capital firm declared their first overseas office in London, after “fruitful discussions” with the British Prime Minister and “several months of constructive talks” with regulators and the Financial Conduct Authority. Chris Dixon, A16z’s crypto founder and managing partner, highlighted a “predictable business atmosphere” as one of the main reasons for their international expansion.

US law enforcement agencies are intensifying their efforts to combat crypto-related criminal activity.