Lawmakers in the United Kingdom
(UK) voted in favor of recognizing crypto assets as a regulated financial
instrument in the country on Tuesday.
The Parliament’s lower house, the
House of Commons, on Tuesday read the proposed Financial Services and Markets Bill
line-by-line, which broadly covered the UK’s economic strategy after Brexit.
The lawmakers discussed proposed amendments to the bill, including one
presented by parliamentarian Andrew Griffith to recognize crypto assets in the
scope of regulated financial services in the country.
The draft bill beforehand included
the measures to extend existing regulations to payments-focused stablecoins.
Stablecoins are cryptocurrencies which are pegged to the value of other assets, mainly the US dollar or gold.
“The matter here is to treat
crypto like other financial assets but not to prefer them, and also to bring
them within the scope of regulations for the first time,” Griffith, the
financial services and city minister said during the discussion before
lawmakers voted largely in favor of the amendment in the legislative package.
The crypto industry has welcomed
the news of Rishi Sunak’s appointment as the UK’s new Prime Minister, standing
to welcome the efforts to provide legal recognition to digital assets broadly.
The referred bill by extension, the stablecoin rules, was introduced in Sunak’s
time as chancellor in the Boris Johnson reign.
The crypto emphasizes the
definition of “crypto asset” added by a new clause 14, which
clarifies that crypto assets could be taken into the scope of the existing
provisions of the Financial Services and Markets Act 2000, Griffith said. The
amendment could regulate crypto promotions and forbid companies that are not
allowed to operate in the country.
“The Treasury will review its
approach with the industry and stakeholders ahead of using the powers to ensure
the framework reflects the unique benefits and risks caused by crypto
activities,” Griffith said.
The rules have a long way to go
before they are enacted as law. However, immediately next, the bill has to go
through the upper house of the Parliament, the House of Lords and then for
royal approval by King Charles III.