The UK has passed laws to facilitate the safe adoption of crypto assets after Brexit.

After successfully achieving independence from the European Union through Brexit, the United Kingdom (UK) is now focusing on reorganizing its internal policies to attract international investors and streamline bilateral trade. Under the leadership of Prime Minister Rishi Sunak, the UK government recently announced that the Financial Services and Markets Act 2023 has been granted Royal Assent. This economic legislation allows the UK government to safely adopt crypto assets.

This decision comes after the European Union passed a comprehensive crypto adoption framework called Markets in Crypto Assets (MiCA) regulation.

According to Economic Secretary to the Treasury, Andrew Griffith, the UK is eager to reform its financial laws to accommodate the regulated growth of the trillion-dollar crypto market.

“This landmark legislation gives us control over our financial services rulebook, supporting UK businesses and consumers and driving economic growth. By repealing old EU laws set in Brussels, it will unlock billions in investment – funds that can fuel innovation and boost the economy,” noted Griffith.

The United Kingdom aims to become a leading hub for initial public offerings (IPOs), as more companies utilize technologies like blockchain and artificial intelligence (AI) to access global markets. With the help of blockchain technology, the country aims to unlock a £100 billion market through the Financial Services and Markets Act 2023.

“Today’s groundbreaking Act also establishes ‘sandboxes’ that can facilitate the use of new technologies such as blockchain in financial markets,” the announcement added.

Closer Look at UK and Crypto Market

London, being a strategic financial hub, has attracted significant investors, especially those seeking refuge from stringent regulatory scrutiny in the United States. Coinbase Global Inc CEO Brian Armstrong has visited the country in recent months and held official meetings with Griffith.

Great meeting today with UK Economic Secretary and City Minister @griffitha.

The UK is moving fast on sensible crypto regulation to both drive economic growth AND consumer protection. Excited to keep investing in the UK. 🇬🇧 pic.twitter.com/478PQSLmDe

— Brian Armstrong 🛡️ (@brian_armstrong) April 17, 2023

However, Armstrong pointed out that some UK-based banks are blocking fiat payments to crypto companies, which has hindered mainstream adoption in the country. Nevertheless, Armstrong affirmed that Coinbase will continue to invest in the UK due to positive crypto-focused policies.

Similarly, crypto exchange Gemini has made a significant entry into the UK market amidst unfavorable developments in the United States. According to the Winklevoss twins, the UK is well-positioned to become a Web3 hub in the near future.

PM Sunak stated that the UK is implementing various plans to become a crypto asset hub. As the Bank of England (BoE) prepares for the rollout of a central bank digital currency (CBDC), the country remains open to the stablecoin market. Additionally, the FCA-led ‘CryptoSprint’ initiative continues to collaborate with the Royal Mint on non-fungible tokens (NFTs), establishing a Crypto Asset Engagement Group.

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