The House of Commons has voted in favor of recognizing cryptocurrency and its assets as regulated financial instruments and products in the UK. The decision was made as part of an amendment to the proposed Financial Services and Markets Bill that covers UK"s post-Brexit economic strategy,
The draft also includes measures to extend existing regulations to "stablecoins", that are cryptocurrencies pegged to the value of other assets like the US dollar or gold. "The substance here is to treat them (crypto) like other forms of financial assets and not to prefer them, but also to bring them within the scope of regulation for the first time," said Andrew Griffith, the financial services and city minister, during the parliamentary meeting.
Notably, the amendment to include crypto assents as regulated financial services was put forward by Griffith.
The crypto industry in the UK welcomed Rishi Sunak as the new Prime Minister of the country. Sunak is known for his stands to give crypto a legal definition. The stablecoin rule was also introduced when Sunak was the finance minister in the Boris Johnson administration.
The new provision relies on the Financial Services and Markets Act 2000 that defines what a crypto asset is and also clarifies that crypto assets could be brought within the scope of the existing provisions. The measures are intended to regulate crypto promotions and to limit companies not authorized to operate in the country.
Including crypto in the scope of regulated financial instruments will also allow the country"s Treasury to step in, in case of volatile crypto developments. The Treasury can then be able to respond to the crypto sector quickly and delivery regulation in an agile way, according to Griffith.
"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," Griffith added.
The next step for the bill is to go through the House of Lords, which is the upper house of the parliament. After final consideration, the bill could be passed into a law following an approval by King Charles III.
Source: CoinDesk