Lawmakers in the U.K have now recognized crypto assets as one of the country’s regulated financial instruments and products.
The lower Parliament House of the country, The House of Commons, on Tuesday, the 25th of October 2022, met for the reading of the proposed Financial Services and Markets Bill, which spans the post-Brexit economic strategy of the U.K.
The lawmakers during the parliamentary session also examined the list of proposed amendments to the bill. This included the amendment put forward by Andrew Griffith, one of the house members, to include crypto assets within the scope of regulated financial services in the country.
The draft bill also has measures to extend existing regulations to payments-focused stablecoins, which are cryptocurrencies pegged to the value of other assets such as the U.S. dollar or gold.
Andrew Griffith, the financial services and city minister, explained, “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.” Succeeding this is the unanimous vote to keep in the legislative package the amendment that recognizes crypto assets.
This recognition vote follows Rishi Sunak as the country’s prime minister, who unveils his plans to make the UK an international hub for crypto during his time as the Finance Minister. While still serving as the finance minister in the administration of Boris Johnson, the markets bill, which extends to the stablecoin rules was introduced.
His appointment as the prime minister marks the efforts to give legal recognition to digital assets broadly.
Defending and explaining his stance, Andrew referred to the Financial Services Market Act 2000, which relates to regulated financial activities. He opined that crypto assets could be brought within the scope of the existing provisions.
The bill still has a long way to go before it gets passed into law, as it has to pass through the House of Lords before it gets accented by King Charles III. This is however a glimpse of hope for the crypto world.
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