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In an historic move set to transform the financial landscape of the United Kingdom, the highly anticipated cryptocurrency bill has officially become law. In a digital age where the lines between traditional and decentralized finance are blurring, the UK is the latest in a line of nations to acknowledge the impending shift. After a rigorous legislative journey, the crypto bill has been granted the royal assent, marking a new dawn for blockchain technology in the country.

King Charles Approves The Crypto And Stablecoin Bill

King Charles of the U.K. affirmed a landmark bill on Thursday, providing regulators with the authority to oversee cryptocurrency and stablecoins, signaling the final stage of the bill’s transformation into law. The ceremonial act of royal assent, following the consent of lawmakers, officially elevates the Financial Services and Markets Bill into an Act of Law.

This includes provisions to incorporate cryptocurrency under the umbrella of regulatory scrutiny. The upper chamber of Parliament had greenlit the bill just last week.

In a statement, Financial Services Minister Andrew Griffith expressed that the Act grants them autonomy over their financial services rulebook, a consequence of the U.K.’s departure from the EU. He added that this enables them to regulate crypto assets, promoting their safe integration into the U.K. financial system.

The cryptocurrency bill, initially brought to the attention of lawmakers in 2022, includes an array of regulations aimed at the burgeoning field of decentralized finance, from Bitcoin to Ethereum, stablecoins to NFTs.

This broad-spectrum bill is designed to provide a much-needed legal framework for crypto transactions, offering protection and clarity to both individuals and businesses in the UK.

While the content of the bill has been a topic of much debate amongst lawmakers and crypto enthusiasts, it has always had one clear objective: to create an enabling environment that fosters growth and innovation in the crypto space, while offering robust protections against fraud and financial crimes.

Regulators Gain Control Over Crypto

The law encompasses provisions for anti-money laundering (AML) procedures, know your customer (KYC) protocols, and regulations on the issuance and operation of stablecoins and other digital assets. It also includes regulatory sandboxes, which will enable innovative fintech companies to test their products and services in a controlled environment.

The power to initiate and enforce regulations governing the crypto sector will soon be within the grasp of the U.K.’s Treasury, Financial Conduct Authority, Bank of England, and the Payments Systems Regulator.

Since February, the Treasury has been actively seeking feedback on its proposed guidelines for the industry, a move aligned with the Conservative Government’s ambition to transform the nation into a global crypto hub. According to an interview with CNBC in April, Economic Secretary Andrew Griffith anticipates that detailed regulations specific to the crypto sector could be in place within the forthcoming 12 months.