UK Lawmakers Vote for Crypto as Regulated Financial Instruments

UK Lawmakers Vote for Crypto as Regulated Financial Instruments 

The House of Commons, the lower house of Parliament, voted in favor of including crypto in the scope of activities to be regulated through the proposed Financial Services and Markets Bill, which already seeks to extend payments rules to stablecoins.

 

Proposed Financial Services and Markets Bill Passed in Lower House 

Lawmakers in the UK voted in favor of recognizing crypto assets as regulated financial instruments and products in the House of Commons, the lower house of Parliament on Tuesday. The lawmakers considered a list of proposed amendments to the Financial Services and Markets Bill, including one put forward by parliamentarian Andrew Griffith to include crypto assets in the scope of regulated financial services in the country.

"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," Griffith, the financial services and city minister said during the parliamentary meeting before lawmakers voted largely in favor of keeping the amendment in the legislative package.

The local crypto industry, which recently welcomed the news of Rishi Sunak's appointment as the country's new Prime Minister, stands to benefit from the efforts to give legal recognition to digital assets. The markets bill and the stablecoin rules were introduced during Sunak's time as finance minister in the Boris Johnson administration.

The crypto provision, which relies on the definition of "crypto asset" inserted by a new clause 14, "clarifies that crypto assets could be brought within the scope of the existing provisions" of the Financial Services and Markets Act 2000 relating to regulated financial activities, Griffith said. The measures could regulate crypto promotions and outlaw companies that are not authorized to operate in the country.

"The Treasury will consult on its approach with industry and stakeholders ahead of using the powers to ensure the framework reflects the unique benefits and risks posed by crypto activities," Griffith said.

According to Griffith, the inclusion of crypto in the scope of the bill will make sure the Treasury is equipped to respond to developments in the crypto sector quickly and deliver regulation in an "agile" way that is consistent with the country's broader approach to regulating the financial services sector.

The rules have a long way to go before they are passed into law. The bill has to go through the House of Lords, the upper house of Parliament before the amendments are given final consideration and royal approval by King Charles III.