FSMA

Definition ∞ FSMA is an acronym for the Financial Services and Markets Act, a foundational piece of legislation in the United Kingdom. This Act provides the legal basis for regulating financial services and markets within the UK. It grants powers to regulatory bodies like the Financial Conduct Authority to oversee firms and ensure market integrity. Its principles are being adapted to address the emergence of digital assets.
Context ∞ The application of FSMA to digital assets is a significant area of focus for UK policymakers and market participants. The ongoing debate centers on how existing regulatory frameworks can accommodate the unique characteristics of cryptocurrencies and blockchain technology. Future developments will likely involve specific amendments or new statutory instruments under FSMA to provide clearer guidance for the digital asset industry.