UK Government Finally Approves Digital Assets and Crypto Trading
UK law now recognizes crypto trading as a regulated activity, boosting its economy.
The Financial Services and Markets Act 2023, a new UK law, now recognizes cryptocurrency trading as a regulated financial activity.This change was confirmed on Thursday through a government announcement.
The law refers to cryptocurrencies as "cryptoassets." These are digitally protected representations of value or rights, and are now considered regulated financial instruments or investments. The UK Treasury believes this law will help cryptocurrencies to be safely used in the country, calling it a big boost for the economy.
Royal Assent, which turns a bill into law, was given after lawmakers agreed on the new rule. The crypto bill was approved by the upper house of Parliament on June 19.
Jeff Feng, co-founder of Sei Labs, sees this as a big step for the cryptocurrency industry. He believes it acknowledges the growing importance of digital assets worldwide. Feng suggests the UK is aiming to become a leading country for crypto innovation, possibly becoming Europe's equivalent to Singapore.
Finally, the Law Commissions of England and Wales recommend that digital assets, including cryptocurrencies and non-fungible tokens, should be seen as a new type of personal property. These recommendations were published on Wednesday.
