In a significant development, the UK lawmakers voted in favor of recognizing crypto assets as regulated financial instruments and products in the country. The provision for regulation is part of a suggested amendment to the proposed Financial Services and Markets Bill.
During a discussion on the bill on Tuesday, the lawmakers in the Parliament’s lower house approved an amendment proposed by parliamentarian Andrew Griffith to bring crypto assets within the scope of regulated financial services.
With this, the UK may well become the next crypto hub after electing the pro-crypto Rishi Sunak as the country’s new prime minister. For perspective, the stablecoin law was introduced when Sunak served as finance minister in the Boris Johnson administration. Besides, Sunak made news earlier this year when he urged the Royal Mint to issue an NFT.
Sunak said, “It’s my ambition to make the UK a global hub for crypto asset technology.” He added, “We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively, we can give them the confidence they need to think and invest long-term”, noting that this is part of the government’s plan to ensure “the UK financial services industry is always at the forefront of technology and innovation.”
Griffith, the financial services and city minister, said during the parliamentary debate before lawmakers voted largely in favor of his proposed amendment that “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,”
While the draft bill already seeks to regulate payments-focused stablecoins, which are crypto pegged to the value of other assets like the US dollar or gold, this new amendment may change the view of crypto in both local and global markets.
However, the draft bill still needs to clear a few more hurdles before it gets legal sanction. The upper house of the Parliament needs to discuss and ratify it before King Charles III gives the final approval.