A bill on financial services and markets that includes the regulation of cryptocurrencies and other digital assets has been submitted to the UK Parliament.

Overall, the changes proposed by the Undersecretariat of Treasury aim to “increase the competitiveness of the country as a global financial center” on the ground of leaving the EU.

The document defines “digital swap assets” (DSA) as a digital representation of a value or right (regardless of cryptographic protection):

• will be used to fulfill payment obligations;
• transmitted, stored or traded electronically;
• and uses technology that can record or store data (including DLT).

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

The initiative ensures that appropriate changes are made to the banking law and as a result, participants in the digital asset market are 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.

Recall that in July, central bank governor John Cunliffe proposed to regulate cryptocurrencies by analogy with traditional finance.

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