New UK Regulation Recognizes Crypto Trading As A Regulated Financial Activity

Liputan6.com, Jakarta The Financial Services and Markets Act 2023, a reform law in the United Kingdom, was granted a Royal Assent from King Charles on Thursday, 29 June 2023 to officially make it law.

Under this new law, cryptocurrency trading is recognized as a regulated financial activity. This amended law defines crypto assets as cryptographically secured digital representations of value or contractual rights assuming they are regulated financial instruments, products or investments.

Royal Assent is the procedural step that follows the approval of lawmakers on a bill, turning it into an Act of Parliament in the country. The bill had received approval from the upper house of Parliament on June 19 before reaching this stage.

The UK Treasury highlighted the purpose of the law is to regulate crypto assets and ensure their safe adoption in the country. The new law is seen as a significant step forward for the economy.

The Secretary for Economics for the UK Treasury, Andrew Griffith in a statement said this landmark piece of legislation gives control of the financial services rule book, thereby supporting UK businesses and consumers and driving growth.

“By repealing the old EU law established in Brussels, it will unlock billions of cash investments that can unlock innovation and grow the economy,” said Griffith, quoted from Decrypt, Wednesday (12/7/2023).

The Financial Services and Markets Act 2023 also lays the foundation for the advancement of the blockchain sector, paving the way for the establishment of an ecosystem which is a controlled environment that facilitates the testing and adoption of new technologies, such as blockchain, in financial markets.

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