UK May Soon Recognize Cryptoassets As Financial Instruments

Amendment To Financial Services and Markets Bill Brings Crypto Regulations One Step Closer

By: Tarang Khaitan Loading...

UK May Soon Recognize Cryptoassets As Financial Instruments

U.K. lawmakers have voted in favor of recognizing and regulating cryptoassets on par with existing financial instruments.

On Tuesday, the House of Commons met for a reading of the existing Financial Services and Markets Bill. Several amendments were made to the bill, including one proposed by MP Andrew Griffith, which introduced cryptoassets into the wider scope of the bill.

The draft bill now features regulations that concern both stablecoins and cryptoassets. In May, it was reported that the Financial Services and Markets Bill will include stablecoin regulation, where stablecoins are used as a form of payment.

“This new clause amends the Financial Services and Markets Act 2000 to clarify that the powers relating to financial promotion and regulated activities can be relied on to regulate cryptoassets and activities relating to cryptoassets. Cryptoasset is also defined, with a power to amend the definition.” the statement reads.

The proposed draft bill is yet to be enacted, however. The bill must next proceed for its 3rd reading, after which it will be sent to the House of Lords, the upper house of Parliament. The final step in the process is getting a stamp of approval from newly-crowned King Charles III, after which the bill will become law.

Crypto-Friendly PM

On Oct. 25, Rishi Sunak was appointed as Britain’s new Prime Minister. The news brought joy to many in the crypto community, who view Sunak as a friend of crypto.

Sunak succeeds Liz Truss, who resigned after just 45 days in office. During her tenure, the pound witnessed its sharpest decline in almost 40 years.

A clip from the leadership race highlights Sunak’s knowledge of NFTs. In April, Sunak charged the Royal Mint with issuing commemorative NFTs in a bid to highlight the United Kingdom’s forward approach to cryptoassets.

Previously, Sunak made his stance clear on Central Bank Digital Currencies (CBDCs). He further said that G-7 central banks are working together to establish a policy framework for their respective retail-focused CBDCs.