UK includes digital assets in the Financial Services and Markets Bill

In the UK Parliament, introduced the Financial Services and Markets Bill that includes regulation of cryptocurrencies and other digital assets.

Overall, amendments proposed by Her Majesty’s Treasury aim to ‘increase the country’s competitiveness as a global financial centre’ in light of Brexit.

The document defines ‘digital settlement assets’ (DSA) as a digital representation of value or a right (regardless of cryptographic protection), that may:

• be used for settling payment obligations;
• be transferred, stored or traded electronically;
• and also use technology that supports recording or storing data (including DLT).

Among the DSA service providers listed in the bill are asset issuers, custodial service providers (including key management), and trading and exchange platforms.

The initiative provides for amendments to the Banking Act, bringing digital asset market participants under its provisions.

The Treasury will be able to propose new rules after consultations with the Bank of England and the Financial Conduct Authority.

In July, Deputy Governor John Cunliffe proposed regulating cryptocurrencies similarly to traditional finance.

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