The UK has finally introduced its New Financial Services and Markets Bill
The Bill seeks to regulate stablecoins as a form of digital payment.
The United Kingdom is looking forward to modifying its financial laws post-Brexit and is seeking to regulate stablecoins via its new market bill.
The UK’s treasury unveiled a new markets bill on Wednesday stating that it seeks to regulate “certain types” of stablecoins as a form of digital payments.
The UK Introduces Its Much Awaited Financial Services And Markets Bill
According to the new bill introduced in the lower parliament on Wednesday, the UK aims to “maintain its position as an open and global financial hub” and intends to “tailor financial services regulation to UK markets to bolster the competitiveness of the UK as a global financial center and deliver better outcomes for consumers and businesses.
In addition to this, the bill also mentions establishing Financial Market Infrastructure Sandboxes, which will be developed to allow firms to test and assess new technologies and experiments.
In simple terms, Sandboxes refer to sequestered environments or spaces, specially designed to execute experimental market products before they are introduced en masse.
The bill comes on the heels of the UK’s budding intention to dominate the crypto market at large and emerge as a leading crypto hub in recent times.
“The government has today announced moves that will see stablecoins recognized as a valid form of payment as part of wider plans to make Britain a global hub for crypto asset technology and investment.” As stated by the UK treasury earlier in April.
The announcement further includes the UK’s decision to introduce a sturdy financial infrastructure that has enough room for stablecoin management and regulation.
Speaking about the new Financial and Markets Bill, the UK’s finance minister Nadhim Zahawi stated:
“It (the bill) reinforces the UK’s position as a leading center for technology as we safely adopt crypto assets…In short, the Bill delivers far-reaching reforms to our financial regulation, which we will deliver in partnership with the industry…We’re engaging internationally with the largest emerging markets…Working to understand how Distributed Ledger Technology could be applied to a UK sovereign debt instrument…”
The bill also intends to support consumers against financial scams and frauds, alongside bolstering crypto innovation and development.
“It safeguards access to cash for generations to come…And it enables regulators to require that victims of push payment scams are paid back…And I fully support industry and regulators’ initiatives to go further – and stop fraud happening in the first place…In short, the Bill delivers far-reaching reforms to our financial regulation, which we will deliver in partnership with industry.” Zahawi said in his speech on Wednesday.
Per a Cointelegraph report, the bill further extends the banking Act of 2009 and the financial services act of 2013 to include digital settlement assets (cryptocurrency and stablecoins) and assigns the task to regulate the DSA’s to the UK Treasury. Per the bill, the treasury will now be able to regulate tasks related to payment made with DSAs, DSA service providers and DSA insolvency structures.
While several countries are still battling over how to regulate cryptocurrencies at large, the UK’s stance towards crypto and stablecoins seems to be quite warm and embracing. The country is now looking forward to crafting new rules permitting its citizens to use stablecoins as digital payments with ease and simplicity.