40 The Financial Services (Banking Reform) Act 2013 is amended as follows.
(1) Section 41 (meaning of payment system) is amended as follows.
(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 -
(a) can be used for the settlement of payment obligations,
(b) can be transferred, stored or traded electronically, and
(c) 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)."
(1) Section 42 (participants in payment systems) is amended as follows.
(2) In subsection (2)(c), for "subsection (5)" substitute
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