UK Market
The UK is well-positioned to play a leading role in the global crypto market, and our advocacy focuses on creating a pro-innovation environment for the cryptoasset community. The entrepreneurial drive of the UK’s financial services ecosystem, coupled with an established market infrastructure and a well-functioning regulatory regime, provides significant advantages for the digital asset sector. Our UK division’s extensive legislative expertise, strong network of key policymakers, and on-the-ground presence in London allow us to support our members' regulatory objectives effectively.
We engage with regulatory developments by participating in policy roundtables organised by government, financial, and tax authorities, providing written opinions on primary and secondary legislation related to the crypto sector, responding to public consultations, hosting events in Parliament, and facilitating bilateral meetings with regulators. The UK's commitment to fostering innovation in financial services positions it as a crucial player in the evolving global crypto regulatory landscape.
Regulatory and Political
Developments in UK
The UK Government has integrated cryptoassets into the regulatory framework established by the Financial Services and Markets Act 2000 (FSMA) through the Financial Services and Markets Act 2023. This move ensures that cryptoassets are regulated within the broader financial environment, reflecting the UK’s commitment to financial innovation while maintaining robust consumer protection and financial stability.
The UK’s comprehensive regulatory framework for cryptoassets includes:
✔️ Money Laundering Regulations (MLRs): Since January 2020, crypto exchanges and wallet providers in the UK must register with the FCA for anti-money laundering (AML) supervision, helping to prevent illicit activities.
✔️ Regulated Activities Order (RAO): The RAO classifies cryptoassets into Security Tokens, E-money Tokens, and Unregulated Tokens, using existing regimes to oversee crypto activities, starting with fiat-backed stablecoins.
✔️ Financial Promotion Order: As of October 2023, cryptoasset promotions are subject to the same stringent rules as other financial promotions, enhancing consumer protection.
Further developments include consultations by the FCA, Bank of England, and PRA on additional regulations that will apply to the cryptoassets sector, potential digital pound introduction, taxation rules, and legal recognition of cryptoassets as personal property. Engaging with the regulatory authorities will be important over the next few years in supporting the rule-making process.
Our Team in UK
