The UK government wants to adopt the nascent crypto asset industry to enable exponential growth to its economy away from the Brussels shackles.
Having successfully secured its independence from the European Union through Brexit, the United Kingdom (UK) continues to reorganize its internal policies to attract international investors and streamline bilateral trade. In the latest developments under the leadership of Prime Minister Rishi Sunak, the UK government announced the Financial Services and Markets Act 2023 was granted Royal Assent on Thursday. Under the economic legislation, the UK government passed to safely adopt the crypto assets.
The move comes after the European Union recently passed a comprehensive crypto adoption framework dubbed Markets in Crypto Assets (MiCA) regulation.
According to Economic Secretary to the Treasury, Andrew Griffith, the country is keen to reform its financial laws to accommodate the fast-growing trillion-dollar market in a regulated manner.
“This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth. By repealing old EU laws set in Brussels it will unlock billions in investment – cash that can unlock innovation and grow the economy,” Griffith noted.
The United Kingdom wants to become a stronghold for IPOs as more companies reach global markets through the use of technologies like 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 ground-breaking Act also establishes ‘sandboxes’ that can facilitate the use of new technologies such as blockchain in financial markets,” the announcement noted.
Closer Look at UK and Crypto Market
With London being a strategic financial hub, the United Kingdom has attracted significant investors especially those fleeing hostile regulatory scrutiny in the United States. In the past few months, Coinbase Global Inc (NASDAQ: COIN) CEO Brian Armstrong has visited the country and made several official meetings with Griffith.
Great meeting today with UK Economic Secretary and City Minister @griffitha.
The UK is moving fast on sensible crypto regulation to both drive economic growth AND consumer protection. Excited to keep investing in the UK. 🇬🇧 pic.twitter.com/478PQSLmDe
— Brian Armstrong 🛡️ (@brian_armstrong) April 17, 2023
However, Armstrong pointed out that some UK-based banks are blocking fiat payments to crypto companies, which has been a huge impediment to mainstream adoption in the country. Nonetheless, Armstrong insisted that the company will continue investing in the country amid positive crypto-focused policies.
Similarly, crypto exchange Gemini has made a significant entrance into the UK market amid hostile developments in the United States. According to the Winklevoss twins, the UK is well slated to be a Web3 hub in the near future.
According to PM Sunak, the UK is implementing various plans to become a crypto asset hub. As the Bank of England (BoE) narrows down to the CBDC rollout, the country remains receptive to the stablecoin market. Additionally, the FCA-led ‘CryptoSprint’ continues to work with the Royal Mint on an NFT, establishing a Crypto Asset Engagement Group.
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