Approves amendments to the Financial Services and Markets Bill
Britain’s King Charles has approved amendments to the Financial Services and Markets Bill on Wednesday. The bill also includes content that clarifies that crypto assets (virtual currencies) can be regulated as financial products.
It would designate all cryptocurrencies as regulated financial activities, include oversight of cryptocurrency advertising, a registration system for companies, and allow stablecoins to be regulated as payment instruments in the UK.
The UK Treasury, the Financial Conduct Authority (FCA), the Bank of England (central bank), payment system regulators and others will be empowered to develop and enforce guidelines governing the cryptocurrency sector.
Treasury Secretary Andrew Griffiths commented:
This landmark legislation will help UK businesses and consumers and drive growth by giving the UK control over the regulation of financial services.
The UK is on track to become one of the world’s most dynamic and competitive financial services hubs.
The proposed amendments to the Financial Services and Markets Bill follow Brexit. It aims to do away with old EU laws, adopt UK rules and unleash innovation.
Other than virtual currency, the main items are “to establish a system that facilitates the use and testing of new technologies such as blockchain in the financial market” and “to remove unnecessary restrictions on the wholesale market”. is.
What is a stablecoin
A cryptocurrency whose price is always stable. Stablecoins are a type of cryptocurrency, and unlike BTC, ETH, and XRP, which have volatility, their purpose is to maintain their value ($1) backed by the US dollar. In addition to US dollar-backed stablecoins (USDT/USDC), there are also stablecoins that use algorithms.
Law Commission Recommendation
In the UK, an independent government-affiliated organization, The Law Commission, has proposed to create a new category of personal property, including digital assets, to address cryptocurrencies.
The proposal was commissioned by the British government.
The Legal Commission said digital assets such as cryptocurrencies and non-fungible tokens (NFTs) do not fit into the traditional personal property category. It proposes to add a third category called “Digital Objects”.
He also mentioned the following:
- Creation of a commission to advise courts on complex legal issues related to digital assets.
- Creating a special legal framework to make it easier to enter into, operate and enforce collateral agreements related to cryptocurrency tokens etc.
Treasury Secretary Andrew Griffiths said he would carefully consider the Commission’s recommendations.
Combining the UK’s excellent business environment with our approach to regulating cryptocurrencies will make the UK a pioneer in innovation that will drive the growth of digital assets and grow the economy.