The House of Lords passed the Financial Services and Markets Bill today, which aims to regulate bitcoin and crypto in the UK. Rocket boost for the economy The upper house of the British government, the House of Lords, has voted to pass into law the Financial Services and Markets Bill that will see the UK embark on a path of acceptance of cryptocurrencies as “regulated activity”. Such a bold move from the UK really puts it on the map as regards its announcement last year which stated that it wished to be a global hub for crypto, and flies completely contrary to the anti-crypto environment that permeates the Biden administration in the US. Hailed as a “Rocket Boost for [the] UK economy” on the UK Gov website, the bill aims to make a “technologically advanced financial services sector” that is “open”, and which will “grow the economy”. As well as moving away from the US rejection of the crypto industry, the UK will repeal all the old laws that were passed in Brussels when it was a member of the EU. The UK Gov statement on its website affirmed: “By repealing old EU laws set in Brussels it will unlock billions in investment – cash that can unlock innovation and grow the economy.” The statement also read that today’s act will regulate crypto assets so that they can be safely adopted in the UK. Just as first suggested by Hester Peirce, US SEC commissioner and staunch defender of the innovations brought by the crypto sector, the UK will “establish Sandboxes” where crypto financial technologies can be tested before being released to the market. Crypto gold rush begins as US looks on As the UK government and regulators start to rewrite the financial rule book in order to grease the rails of innovation with full transparency and oversight of its regulators, this move has the potential to set a crypto gold rush in motion. The European Union has its MiCA regulations coming into force in 2024, Hong Kong, with Chinese backing, is opening itself up as a potential go-to crypto hub in Asia, and other jurisdictions such as Singapore and Dubai are also competing for a share of the crypto industry. Back over the pond in the US things are starting to look more and more gloomy as the SEC with full backing from the government drives the most innovative industry since the Internet away from its shores and into the welcome embrace of the aforementioned countries. The crypto industry will go where it is most welcome - and this certainly is not in the United States of today. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
