Standard Chartered’s Insight on UK’s Crypto Regulatory Framework
Standard Chartered observes that the United Kingdom has joined the league of nations that have officially implemented regulations for cryptocurrencies and digital assets. Although its user base is smaller compared to the United States, this proactive measure by Great Britain and Northern Ireland positions them ahead in terms of acceptance and regul
The bill grants regulators the authority to oversee crypto and stablecoins and was approved by King Charles overnight, marking the final formal stage that makes the bill a law.
After receiving royal assent, a procedural formality following approval from lawmakers, the Financial Services and Markets Bill has become an Act, incorporating provisions to regulate cryptocurrencies and stablecoins. The bill received endorsement from the upper chamber of Parliament last week.
Introduced in July 2022, the bill enhances regulators’ oversight of the financial system, including the realm of cryptocurrencies. During parliamentary discussions, amendments were introduced to classify all crypto activities as regulated and to supervise crypto promotions. Additionally, the bill extends payment rules to cover stablecoins.
In a recent interview, Andrew Griffith, the economic secretary to the U.K. Treasury, expressed the country’s desire to harness the benefits of blockchain technology for the private sector and the economy. He emphasized that the ultimate goal is to enable businesses to fully leverage the opportunities presented by crypto assets through appropriate regulatory measures.
With the new legislation in place, the U.K. has the potential to serve as a catalyst for attracting more cryptocurrency firms, especially considering the stringent regulatory landscape worldwide.
Andreessen Horowitz (A16z), a prominent venture capital firm, recently announced its plans to establish its first office outside the United States in London. The decision was influenced by a “productive dialogue” with the U.K. prime minister and months of constructive discussions with policymakers and the Financial Conduct Authority (FCA).
A16z’s crypto founder and managing partner, Chris Dixon, specifically highlighted the importance of a “predictable business environment” as a key factor contributing to the expansion of their operations overseas.
These significant strides by the U.K. government raise questions about whether the U.S. government is falling too far behind and if Australia will follow suit.
Hopefully, our government will begin to make similar moves in the near future.
