UK Lawmaker Vote Paves the Way for Crypto Regulation
UK lawmakers voted on October 25 to recognize crypto assets as regulated financial instruments.
As part of the draft bill, there are measures that would extend existing regulations to the emergence of payment-focused stablecoins, which are cryptocurrencies whose value is pegged to other assets like the U.S. dollar or gold in order to boost payments.
“A range of measures to maintain and enhance the U.K.’s position as a global leader in financial services, ensuring the sector continues to deliver for individuals and businesses across the country,” as per the bill.
Stablecoin regulations are being broadened under the bill, and "Digital Settlement Assets" (DSA) are used in place of "crypto assets." Unlike cryptocurrency assets, DSA includes stablecoins, "considering their potential to become widespread payment methods."
The appointment of Rishi Sunak as the new prime minister has recently piqued the local crypto industry, which welcomes the government's efforts to legalize digital assets. Rishi Sunak has expressed interest in cryptocurrency, in addition to supporting a nonfungible token called Royal Mint.?
Prime Minister Sunak's appointment comes during a period of economic and political uncertainty in the country. During his time at the Treasury, the former Chancellor played a crucial role in promoting the U.K. cryptocurrency hub agenda.?
Despite the fact that crypto and digital assets are already recognized as financial instruments, the legislation is not yet in place and must pass crucial steps before the bill is finally approved by King Charles III, which includes the House of Lords amending the bill.
CBW - External Analyst