Lawmakers from the House of Commons have voted to recognize crypto as a regulated financial means in the UK. This boosted the crypto price increases. This decision could mean a next step towards putting the UK down as the European crypto hub.
These latest developments come during a turbulent time for UK politics. Earlier this week, Rishi Sunak was appointed as the leader of the Conservative Party and also the Prime Minister of the country. He replaces Liz Truss, the UK’s shortest-serving prime minister who resigned after 45 days.
Lawmakers in the United Kingdom debated a bill introduced by Sunak when he served as finance Minister under Boris Johnson, the ‘Financial Services and Markets Bill’.
During the parliamentary session, Conservative MP Andrew Griffith tabled an amendment to expand the law so that crypto would also fall under it. Griffith has served as the UK’s finance secretary and as City minister from September 2022.
Griffith said, as quoted at the debate transcript, “the new clause 14 makes it clear that crypto assets can be brought under the scope of the existing provisions of the ‘Financial Services and Markets Act 2000’ related to the regulated activities act. The content means that crypto-assets will be treated in the same way as other forms of financial assets: for the first time within the scope of regulation. That is the purpose of the new clause.”
“It will ensure that the Treasury is now better equipped to respond more quickly to developments within the crypto sector. In addition, it will provide regulation in a resilient but risk-based manner consistent with our approach to the broader financial services sector,” said the politician.
Griffith said the goal is to “treat Crypto like other financial assets and not to prefer them but to bring them within the reach of legislation for the first time.”
The provisions of the bill also consist of measures that settle stablecoins under the existing legislation.
A lawmaker from the opposition party, Tulip Siddiq of the Labour Party, stated during the debate on the bill that the provisions for crypto are a welcome and important step that will ensure the prevention of erroneous and misleading information to the general public through high-risk crypto assets.”
UK legislative procedure require the bill to go through two more stages in the House of Commons, after which it will be submitted to the Upper House of Parliament (the House of Lords). If no amendments are made by the legislators, the bill will go through the final stages before it is signed by King Charles of the UK and the law will become active.
