In a groundbreaking move that signals the U.K.’s ambition to become a global leader in cryptocurrency innovation, the Financial Services and Markets Act 2023 received Royal Assent, officially making it law.
Investors King understands that the U.K. Treasury has hailed the crypto reform bill as a ‘rocket boost’ for the economy, recognizing the tremendous potential of digital assets and positioning the country at the forefront of the rapidly evolving crypto landscape.
The newly enacted law, which recognizes crypto assets as regulated financial instruments, marks a significant milestone for the broader crypto industry.
Under the legislation, crypto assets are defined as “cryptographically secured digital representation of value or contractual rights.” This recognition not only provides a clear framework for the regulation of cryptocurrencies but also emphasizes the growing legitimacy of digital assets in the U.K.
“The formal recognition of cryptocurrencies in the U.K. represents a significant advancement for the broader crypto industry,” commented Jeff Feng, co-founder of blockchain developer Sei Labs. Feng added, “It serves as an acknowledgment of the growing legitimacy of digital assets, something that is becoming increasingly crucial as countries worldwide competes for supremacy in the crypto and tech space.”
The U.K. Treasury, in a press release, highlighted the role of the new legislation in supporting the safe adoption of crypto assets within the country. With this forward-looking approach, the U.K. aims to position itself as a crypto innovation hub, attracting entrepreneurs and businesses seeking a favorable environment for cryptocurrency-related ventures.
Experts have drawn parallels between the U.K.’s aspirations and Singapore’s success in becoming a prominent crypto-friendly hub in Asia. By fostering an ecosystem that promotes cryptocurrency innovation and competition, the U.K. aims to establish itself as the ‘Singapore of Europe’ in the crypto domain. Such a positioning could potentially lure international investors and businesses to the country, bolstering its economic growth and competitiveness in the global market.
The crypto reform bill’s journey to becoming law began with its approval from the upper house of Parliament on June 19. Following this, the procedural stage of Royal Assent, which follows lawmakers’ agreement on a bill, was completed, granting it the status of an Act of Parliament.
The U.K. government’s swift action in recognizing the significance of cryptocurrencies demonstrates its commitment to remaining at the forefront of the digital revolution.
In a complementary move, the Law Commissions of England and Wales recently published recommendations to reform and develop laws related to digital assets. These recommendations propose classifying digital assets, including cryptocurrencies and non-fungible tokens (NFTs), as a new category of personal property. This progressive approach aims to ensure a comprehensive legal framework for the burgeoning digital asset market.