Hungry for competitiveness and of economic growth, the UK took a big step in cryptocurrencies yesterday. A bill recognizing them as regulated financial activity has just received the approval of King Charles III.
The United Kingdom, a crypto hub in the making?
The arrival of Rishi Sunak at 10 Downing Street last October was decisive for the UK’s position on cryptocurrencies. Because the man who proposed a recovery plan more effective than that of Liz Truss also distinguished himself by his ambition to turn the country into a big crypto hub internationally.
Since this historic date, the United Kingdom has simply pressed on the mushroom. Thus, many do not seem surprised by the content of this Press release published on Gov.uk yesterday.
” The UK passes a bill to recognize cryptocurrency as a regulated financial activity in the country. »
Water Guruone of the crypto media to relay this info, made it clear that the Financial Services and Markets Act 2023 has now become an effective law throughout the kingdom. King Charles himself granted the “royal assent” to this bill last Thursday.
” The Financial Services and Markets Act 2023 is key to realizing the government’s visionwhich is to grow the economy and create an open, sustainable and technologically advanced financial services sector. »
From this initiative, we can draw two very important points:
- the recognition of cryptocurrencies as “ regulated financial activity » ;
- and the green light given to regulators of the cryptocurrency industry (including bitcoin and stablecoins).
As a reminder, the Financial Conduct Authority and the Prudential Regulatoin Authority make up the list of UK regulators concerned.
A sluggish economy
We will not blame British governments for this choice of unlocking investment opportunities related to cryptocurrencies.
Tormented by a galloping inflation (the highest in the G7) and the impacts of Covid-19, an unattractive situation to which is added economic stagnation in the first quarter of 2023, the United Kingdom is finally allowing itself some liberties. Besides, his emancipation from the EU kind of gave him wings. And this despite the myriads of difficulties associated with Brexit.
Current statistics are not very kind on this subject: GDP growth estimated at 0.1% in Q1 2023. And even worse, the 0.5% growth in January was mutated into a decline of 0.3% in March.
For Andrew Griffith, Secretary of State for the Treasury:
” This landmark piece of legislation gives us the oversight of our financial services policy, to support UK businesses and consumers and drive growth. By repealing the old EU laws defined by Brussels, it will unblock billions of investments – funds that can stimulate innovation and economic growth. »
Otherwise, for the UK, the bitcoin legalizationlike El Salvador and the Central African Republic, does it the next step ?
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