New UK financial law includes 'crypto hub' provisions and web3 rules

Legislation for regulating crypto and stablecoins has become law in the UK, after a more comprehensive law reforming post-Brexit financial regulations in the country passed the last stage of the UK's parliamentary procedure.

Among other provisions, the Financial Services and Markets bill gives regulators powers to tailor a framework for the digital asset sector in support of Prime Minister Rishi Sunak's ambition to turn the UK into a a global crypto-hub.

On Thursday, it passed the final stage of the UK legislature's law making process, after being given Royal Assent by King Charles.

The law allows for regulatory 'sandboxes' to allow for further experimentation with blockchain use cases by businesses, in addition to formalizing the UK's treatment of stablecoins as a form of payment. On its passage through parliamentary review stages, the bill was amended to treat all crypto as a regulated activity and to give regulators power to supervise crypto promotions. 

 “This landmark piece of legislation gives us control of our financial services rulebook, so it supports UK businesses and consumers and drives growth," said UK Economic Secretary to the Treasury Andrew Griffith in a statement. "By repealing old EU laws set in Brussels it will unlock billions in investment, cash that can unlock innovation and grow the economy."

Parts of industry also embraced the law, among other recent digital asset-related policy developments in the UK.

"The UK is making good on its promises to position the country as a leading crypto hub. Today's passing of the Financial Services and Markets Bill - which follows closely on the heels of yesterday's report from the Law Commission recommending UK law to accommodate crypto assets - is a crucial step in this journey, providing certainty and clarity for the crypto industry," Andrew Whitworth, Policy Director for EMEA at Ripple. Whitworth added the legislation positions the UK as a leading destination for global crypto and blockchain companies.