UK agrees on regulation of crypto

The United Kingdom's form of regulation for digital assets aims to create an equivalent of MiCA legislation. The rules will take effect from 2024.

The U.K. government's definitive version of its crypto regulations published. It includes provisions for fiat-backed stablecoins and other cryptocurrencies. The proposed provisions are seen as a precursor to future legislation in the country, seen as the British answer to the MiCA regulation of the EU.

Updating the final version of the provisions follows a February consultation phase with the public during which stakeholders were able to make suggestions on the planned legislation. From early 2024, the provisions will gradually come into effect. At that time, crypto service providers in the United Kingdom will be supervised by the Financial Conduct Authority (FCA).

The British Parliament already passed the Financial Services and Markets Act in June this year, which recognizes crypto trading and other crypto sector activities as regulated financial activities.

With the final provisions, the government is following the plan of the current prime minister, Rishi Sunak, who declared in April 2022 that the country wants to evolve into a "global crypto center."