U.K. lawmakers voted on Tuesday to legalize cryptocurrency assets, making them a regulated form of currency for the first time.
On Tuesday, the Parliament’s lower house, the House of Commons, met to read the proposed Financial Services and Markets Bill, which broadly covers the U.K.’s economic strategy post-Brexit, line by line. Parliamentarian Andrew Griffith proposed amending the bill so that cryptocurrencies would fall under the purview of regulated financial services in the country, and this was one of several options considered by the legislators.
Measures to extend current regulations to payments-focused stablecoins, which are cryptocurrencies pegged to the value of other assets like the U.S. dollar or gold, were already included in the draft bill.
During the parliamentary meeting, Griffith, the financial services and city minister, said, “the substance here is to treat them [crypto] like other forms of financial assets and not to prefer them,” and lawmakers overwhelmingly voted in favor of keeping the amendment in the legislative package.
Recent news of Rishi Sunak’s appointment as the country’s new Prime Minister was met with excitement by the local crypto industry, and efforts to give legal recognition to digital assets are expected to be met with approval. Sunak served as finance minister in the Boris Johnson government, and it was during this time that the markets bill was introduced, which ultimately led to the stablecoin regulations.
According to Griffith, “the definition of crypto asset inserted by new clause 14 clarifies that crypto assets could be brought within the scope of the existing provisions” of the Financial Services and Markets Act of 2000 relating to regulated financial activities. Cryptocurrency advertising may be subject to regulation, and unlicensed businesses may be made illegal by these proposed measures.
In order to make sure the framework accounts for the particular advantages and dangers of crypto activities, “the Treasury will consult on its approach with industry and stakeholders before exercising the powers,” Griffith explained.
Griffith argues that including cryptocurrency in the bill’s purview will allow the Treasury to swiftly adapt to changes in the industry and provide regulation in a “agile” manner, in line with the country’s approach to regulating the financial services sector as a whole.
In order to make sure the framework accounts for the particular advantages and dangers of crypto activities, “the Treasury will consult on its approach with industry and stakeholders before exercising the powers,” Griffith explained.
However, there is still a long way to go before the rules are officially enacted. The bill then moves on to the upper house of Parliament, the House of Lords, where any remaining amendments are debated and ultimately approved by King Charles III.
Marine Corps Veteran-turned-national-tv-personality Eric Mitchell is a world leading expert in sports media, regularly appearing on the world’s largest outlets from BBC, MSNBC, Fox News, Bloomberg, CNN and more. His signature blend of snark and industry expertise landed him columns at none other than RollingStone, GritDaily, PopWrapped, Disrupt — and most recently — Editor in Chief at NFT Today Magazine. When he’s not making media appearances or running his empire at LifeFlip Media, he can be found entertaining his thousands of loyal followers on social media through his authentic filter-free content.
