UK crypto bill reaches final stage, on track for passage

The Financial Services and Markets Bill, which has been discussed in the British Parliament since July 2022, is now awaiting royal assent from King Charles in order to become law. Once approved, this legislation will bring cryptocurrencies under the same regulatory framework as traditional assets in the United Kingdom.

The bill, which received approval from the upper chamber of the U.K. parliament on June 19, aims to provide legal clarity and support the adoption of cryptocurrencies in the country. It grants the Treasury, Financial Conduct Authority (FCA), Bank of England, and Payments Systems Regulator the authority to establish and enforce regulations for crypto businesses.

This development is seen as a significant milestone for the local crypto community, as it paves the way for increased participation and growth. Andrew Griffith, the economic secretary to the U.K. Treasury, expressed the country’s intention to leverage blockchain technology’s advantages for the private sector and economy. The long-term vision is to create an environment where firms can fully exploit the opportunities presented by crypto assets while operating within appropriate regulatory boundaries.

Furthermore, this legislation has the potential to attract more crypto firms to the U.K., especially considering the stringent regulatory environments in other parts of the world. The recent announcement by venture capital firm Andreessen Horowitz (A16z) to establish its first overseas office in London reflects the positive outlook. A16z cited the “predictable business environment” resulting from constructive conversations with policymakers and the FCA, as well as productive dialogues with the U.K. prime minister, as key factors influencing their decision to expand in the U.K.

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