The House of Lords today passed the Financial Services and Markets Bill, which aims to regulate bitcoin and cryptocurrencies in the United Kingdom.
Rocket Boost to the Economy
The House of Lords, the upper house of the British government, has voted to pass the Financial Services and Markets Bill, which will put the UK on the path to accepting cryptocurrencies as a “regulated activity.”
Such a bold move by the U.K. has indeed made it famous for its statement last year that it wanted to become a global hub for cryptocurrencies, the exact opposite of the anti-encryption environment that permeated the Biden administration in the U.S.
Known as “A rocket-like boost for the UK economy“On the UK government website, the bill seeks to make “A technologically advanced financial services industry” is “open” and will “promote economic growth”.
In addition to getting rid of the U.S. exclusion of the cryptocurrency industry, the U.K. will repeal all old laws passed in Brussels when it was a member of the European Union. The UK government confirmed in a statement on its website:
“By repealing the old EU laws enacted in Brussels, it will free up billions of dollars of investment – cash that can free up innovation and grow the economy.”
The statement also noted that today’s bill will regulate crypto assets so they can be safely adopted in the UK.
As first suggested by SEC commissioner Hester Peirce, a staunch defender of innovation in the crypto industry, the U.K. will “create sandboxes” where crypto-financial technologies can be tested before they are released to the market.
Crypto Gold Rush Begins as U.S. Watches
The move threatens to spark a cryptocurrency gold rush as the UK government and regulators begin rewriting the financial rulebook to grease the tracks of innovation with full transparency and oversight from regulators.
With the EU’s MiCA regulation set to come into force in 2024, Hong Kong, backed by China, is opening itself up as a potential Asia’s cryptocurrency hub of choice, with other jurisdictions such as Singapore and Dubai vying for market share. Crypto industry.
Back in the US, things started to look increasingly bleak as the SEC, with the full support of the government, propelled the most innovative industry since the internet off US shores and into the welcoming arms of the aforementioned countries. The crypto industry will go where it’s most popular — and that’s certainly not in the U.S. today.
Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.