40U.K.The Financial Services (Banking Reform) Act 2013 is amended as follows.
Commencement Information
I1Sch. 6 para. 40 in force at 29.8.2023, see s. 86(2)(a)
41(1)Section 41 (meaning of payment system) is amended as follows.U.K.
(2)After subsection (2) insert—
“(2A)In this Part—
“funds” includes digital settlement assets (except in section 41(2)(e));
“digital settlement asset” means a digital representation of value or rights, whether or not cryptographically secured, that—
can be used for the settlement of payment obligations,
can be transferred, stored or traded electronically, and
uses technology supporting the recording or storage of data (which may include distributed ledger technology).
(2B)In this section, “digital settlement asset” includes a right to, or interest in, a digital settlement asset.
(2C)The Treasury may by regulations amend the definition of “digital settlement asset” in subsection (2A).”
Commencement Information
I2Sch. 6 para. 41 in force at 29.8.2023, see s. 86(2)(a)
42(1)Section 42 (participants in payment systems) is amended as follows.U.K.
(2)In subsection (2)(c), for “subsection (5)” substitute “subsections (5) and (5A)”.
(3)After subsection (5) insert—
“(5A)“Payment service provider” in relation to a payment system that includes arrangements using digital settlement assets means—
(a)a person responsible for managing the issuance and redemption of digital settlement assets;
(b)a person whose business or occupation is to safeguard, or to safeguard and administer digital settlement assets, including their private cryptographic keys (or means of access);
(c)a digital settlement asset exchange provider;
(d)a person who—
(i)sets rules, standards, or conditions of access or participation in relation to the system, or
(ii)provides any service that facilitates, or supports, a transfer of money or digital settlement assets to be made using the system, including any infrastructure provider in relation to the system.”
Commencement Information
I3Sch. 6 para. 42 in force at 29.8.2023, see s. 86(2)(a)
43U.K.In section 98 (duty of regulators to ensure co-ordinated exercise of functions), for paragraph (c) of subsection (5) substitute—
“(c)in relation to the FCA—
(i)the functions conferred on it by or under FSMA 2000 (see section 1A(6) of that Act);
(ii)the functions conferred on it by or under Part 3 of the Payment Card Interchange Fee Regulations 2015 (S.I. 2015/1911);
(iii)the functions conferred on it by or under the Electronic Money Regulations 2011 (S.I. 2011/99);
(iv)its functions in regulating—
(a)credit institutions where authorised under Part 4A of FSMA 2000, or
(b)authorised payment institutions under the Payment Services Regulations 2017 (S.I. 2017/752).”
Commencement Information
I4Sch. 6 para. 43 in force at 29.8.2023, see s. 86(2)(a)
44U.K.In section 110 (interpretation of Part), at the appropriate place insert—
““digital settlement asset” has the meaning given by section 41(2A);”;
““digital settlement asset exchange provider” has the meaning given by section 182(5B) of the Banking Act 2009;”.
Commencement Information
I5Sch. 6 para. 44 in force at 29.8.2023, see s. 86(2)(a)
45U.K.In section 112 (interpretation: infrastructure companies), after subsection (2)(a) insert—
“(aa)a recognised DSA service provider,”
Commencement Information
I6Sch. 6 para. 45 in force at 29.8.2023, see s. 86(2)(a)
46U.K.In section 113 (interpretation: other expressions), in subsection (1) at the appropriate place insert—
““recognised DSA service provider” means a DSA service provider, as defined by section 182(5A) of the Banking Act 2009, in respect of which a recognition order under section 184A of that Act is in force;”.
Commencement Information
I7Sch. 6 para. 46 in force at 29.8.2023, see s. 86(2)(a)
47(1)Section 115 (objective of FMI administration) is amended as follows.U.K.
(2)In the opening words of subsection (1) after system insert “, or a recognised DSA service provider,”.
(3)In subsection (1)(a) after “system” in each place, insert “or provider”.
Commencement Information
I8Sch. 6 para. 47 in force at 29.8.2023, see s. 86(2)(a)
48U.K.In section 143 (Parliamentary control of orders and regulations), after subsection (2)(a) insert—
“(aa)regulations under section 41(2C) (meaning of “digital settlement asset”);”.
Commencement Information
I9Sch. 6 para. 48 in force at 29.8.2023, see s. 86(2)(a)