UK Include Digital Assets In Financial Markets Bill

A bill on financial services and markets was submitted to the UK Parliament, which included the regulation of cryptocurrencies and other digital assets.

In general, the changes proposed by HM Treasury are aimed at “increasing the country’s competitiveness as a global financial center” against the backdrop of leaving the EU.

The document defines a “digital settlement asset” (DSA) as a digital representation of a value or right (regardless of cryptographic protection) that can:

• be used to settle payment obligations,
• transmitted, stored, or traded electronically;
• and also uses technology that supports data recording or storage (including DLT).

Among the DSA service providers, the draft law lists asset issuers, custodial service providers (including private key management), and trading and exchange platforms.

The initiative provides for the introduction of appropriate changes to the law on banking, as a result of which participants in the digital asset market will be subject to its rules.

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