The UK is poised to introduce regulations that would bring order to its crypto sector within the year. Andrew Griffith, the financial secretary to the Treasury, commented in a recent interview that a new set of regulations had an expected 12-month timeline, saying “we’ve got the ability to move in an agile and proportionate way.”
The Financial Services and Markets Bill (FSMB), a landmark bill which aims to give regulators greater power over the crypto asset sector, is currently in the House of Lords in the final stages of being debated and amended.
The bill, which was introduced by then-chancellor of the exchequer Rishi Sunak in mid-2022, is wide-ranging and comprehensive, covering requirements for the registration and regulation of crypto firms registered with the Financial Conduct Authority (FCA).
It also provides for the definition of “cryptoasset” as “any cryptographically secured digital representation of value or contractual rights” that can be transferred, stored or traded electronically and uses blockchain technology.
Furthermore, lawmakers proposed that providers of stablecoins backed by liquid reserves comply with “expectations and standards,” as set out by the Financial Policy Committee.
These new regulations, if eventually passed, may by far outplace the enforcement-heavy approach of the US, which also recently published a draft bill on regulations for stablecoin providers.
It appears the UK is looking toward a more responsible approach that would discourage unlawful practices, protect investors and spur the flourishing of the crypto industry. In light of Brexit, the UK is looking to gain a competitive advantage over its international peers in all aspects, the crypto sector included.