Financial Services and Markets Act

Definition ∞ The Financial Services and Markets Act is a foundational piece of legislation in the United Kingdom governing financial services and markets. It establishes the regulatory framework for financial firms and activities. This Act empowers regulatory bodies to set rules, authorize firms, and enforce compliance. Its provisions aim to maintain financial stability, promote competition, and protect consumers.
Context ∞ The Financial Services and Markets Act serves as the primary legislative instrument through which the UK government intends to regulate digital assets. Current discussions involve extending the Act’s scope to explicitly include stablecoins and other crypto assets within a comprehensive regulatory perimeter. A key debate centers on how existing financial regulations can be adapted to address the unique characteristics and risks associated with blockchain technology. Future legislative amendments are anticipated to provide clearer definitions and regulatory powers specific to the rapidly growing digital asset sector.