Lawmakers in the UK voted to recognize Crypto assets as a regulated financial instrument in the country. On Tuesday, the house of commons, the parliament’s lower house, read aloud the financial services and market bills which broadly cover the UK’s post-Brexit economic policy.
The lawmakers will take the bill’s suggested changes into consideration. One parliamentarian Andrew Griffith told to include Crypto assets in the scope of regulated financial services in the country. However, the proposed bill already included provisions to expand existing restrictions to payments focused on Stablecoins, cryptocurrencies pegged to the value of other assets like gold and the US dollar.
Griffith, the finance minister, and city affairs suggested that the purpose of the amendment is to treat Crypto like other forms of financial assets and not to prefer them. Moreover, to bring Crypto under regulations for the first time, said Griffith. The local cryptocurrency sector recently welcomed Rishi Sonak’s appointment as the country’s new prime minister. He did efforts to bring digital assets to legal recognition broadly.
Boris Johnson Administration’s Finance Minister presented the market bills, which indirectly led to the Stablecoin regulations. As the world is becoming digital, financial dealings are also becoming digital globally. The new clause 14 declares Crypto provision is mainly a “Crypto asset”. The clause clearly states that we need to bring Crypto-assets within the scope of the Financial Services and Market Acts 2000 relating to regulated financial activities.
Griffith added that the proposals might regulate Crypto promotions and outlaw companies. That are not authorized to operate in the country. The Treasury will consult on its approach with industry and stakeholders ahead of using the powers. To ensure the framework reflects the unique benefits and risks posed by Crypto activities, added by Griffith.
According to Griffith, taking action to include cryptocurrency in the scope of the bill is a good step. However, the action will ensure that the country’s treasure is ready to respond quickly. To developments in the Crypto sector and deliver regulation in an “agile” manner that is in line with the country’s broader approach to regulating the financial services sector.
Moreover, he added that the Treasury would consult on its approach with industry and stakeholders ahead of using the powers. It is to ensure the framework reflects the unique benefits and risks posed by Crypto activities. Alas, before the regulations become law, there are other things also to consider. The law must then pass the Chamber of Lords. The upper house of the parliament also has to go through the bill before Charles III will give his royal approval.