The Financial Services and Markets Bill, a UK legislation granting regulatory oversight over cryptocurrencies and stablecoins, received royal assent from King Charles on Thursday. This formalizes the bill into law, marking a significant step in UK crypto regulation.

Royal assent is a procedural step taken after a bill has been approved by lawmakers. The new Act brings crypto assets and stablecoins under the purview of regulation, following its approval by Parliament’s upper chamber last week.

Financial Services Minister, Andrew Griffith, said the Act “gives us control of our financial services rulebook” post the UK’s departure from the EU. It enables UK crypto regulation in order to foster the safe adoption of this innovative new asset class.

Introduced in July 2022, the bill bolsters regulators’ power over the financial system, including cryptocurrencies. It was revised during parliamentary debates to treat all crypto as a regulated activity and to supervise crypto promotions. Additionally, the bill extends the scope of payment rules to stablecoins.

The ability to enforce rules and introduce new ones to regulate the sector now lies with the UK’s Treasury, Financial Conduct Authority, Bank of England, and the Payments Systems Regulator.

The Treasury has been deliberating on the proposed rules since February, aligning with the Conservative Government’s objective of transforming the UK into a hub for cryptocurrency. Financial Services Minister Griffith indicated in an April interview with CNBC that specific rules for the crypto sector could be introduced within the next 12 months.