FSMA Framework

Definition ∞ The FSMA Framework refers to the regulatory structure established by the Financial Services and Markets Act, a key piece of legislation in the United Kingdom. This framework grants authority to regulators like the Financial Conduct Authority and the Prudential Regulation Authority to oversee financial services and markets. It sets out rules for authorization, conduct, and enforcement to maintain financial stability and protect consumers. The framework is currently being adapted to accommodate new financial innovations, including digital assets.
Context ∞ The application of the FSMA Framework to digital assets is a significant area of legislative and regulatory focus in the UK, as authorities work to clarify the legal status and supervision of crypto-related activities. Discussions often involve determining which cryptoassets fall within the existing regulatory perimeter and where new legislation is required. Future legislative updates and regulatory guidance under the FSMA are expected to provide greater certainty for firms operating in the digital asset space.