The UK government wants to embrace the nascent crypto-asset industry to enable exponential growth of its economy away from the restrictions of Brussels.
Having successfully secured its independence from the European Union through Brexit, the United Kingdom (UK) continues to realign its domestic policies to attract international investors and streamline bilateral trade. In the latest development spearheaded by Prime Minister Rishi Sunak, the UK government announced that the Financial Services and Markets Act 2023 had been granted royal assent on Thursday. Under economic legislation, the UK government has endorsed the adoption of crypto assets securely.
The move comes after the European Union recently passed a comprehensive cryptocurrency adoption framework dubbed Markets in Crypto Assets Regulation (MiCA).
According to the Treasury’s Economics Secretary, Andrew Griffiths, the country is eager to reform its fiscal laws to accommodate the fast-growing trillion-dollar market in an orderly manner.
“This landmark legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth. By overturning old EU laws that were put in place in Brussels, it will unlock billions in investment – cash that can unlock innovation and grow Economics,” Griffiths male.
The UK wants to become a hotspot for initial public offerings as more companies access global markets through the use of technologies such as blockchain and artificial intelligence (AI). The country wants to unlock a £100 billion market through the Financial Services and Markets Act 2023 with the help of blockchain technology.
“Today’s groundbreaking law also creates ‘sandboxes’ that can facilitate the use of new technologies such as blockchain in financial markets,” the announcement noted.
Look closely at the UK and the cryptocurrency market
With London being a strategic financial centre, the UK has attracted important investors especially those fleeing hostile regulatory scrutiny in the US. In the past few months, Coinbase Global Inc (NASDAQ:COIN) CEO Brian Armstrong has visited the country and held several official meetings with Griffith.
A wonderful meeting today with the British Minister of Economy and the Minister of the City @tweet.
The United Kingdom is rapidly advancing reasonable cryptocurrency legislation to drive economic growth and consumer protection. Excited to continue investing in the UK. 🇬🇧 pic.twitter.com/478PQSLmDe
– Brian Armstrong 🛡️ (@brian_armstrong) April 17, 2023
However, Armstrong noted that some UK-based banks are blocking mandatory payments to crypto companies, which has been a huge barrier to mainstream adoption in the country. However, Armstrong insisted that the company would continue to invest in the country amid positive crypto-focused policies.
Similarly, cryptocurrency exchange Gemini has made a major entrance into the UK market amid hostile developments in the US. According to the Winklevoss twins, the UK is set to become a Web3 hub in the near future.
According to PM Sunak, the UK is implementing various plans to become a hub for crypto assets. With the Bank of England (BoE) clamping down on CBDC offerings, the country remains receptive to the stablecoin market. Additionally, FCA-led CryptoSprint continues to work with the Royal Mint on NFT, establishing the Crypto Asset Engagement Group.
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