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U.K. Lawmakers Vote to Recognize Crypto As Regulated Financial Instrument

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The House of Commons, the lower house of the UK Parliament, approved crypto-assets as regulated financial instruments on October 25th. As part of the bill, the current law on payment-focused goods would: stablecoinThe move follows the recent appointment of Rishi Sunak as the UK’s new prime minister, who is seen as a crypto-friendly leader.

important point

  • After passing the House of Commons, the Financial Services and Markets bill is now going to the House of Lords.
  • The bill aims to establish digital assets as regulated financial instruments.
  • The move follows the recent appointment of Rishi Sunak, known as a crypto-friendly leader, as UK Prime Minister.

Lawmakers agree to amend

Congressman Andrew Griffiths introduced a proposal to include crypto assets as part of the proposed Financial Services and Markets Bill. Lawmakers discussed the Financial Services and Markets Bill related to the post-Brexit economic plan and agreed on amendments including regulation of crypto assets.

As soon as the law is passed, the UK Treasury will be able to enforce regulations on the crypto market. In the meantime, financial authorities will consult with relevant stakeholders to ensure the framework maximizes the benefits of cryptocurrencies and addresses risks.

Look out for the new prime minister

The move follows a call by the All-Party Parliamentary Group for Crypto and Digital Assets (APPG), chaired by Scottish Nationalist MP Lisa Cameron, for the UK government to clarify its commitment to the crypto sector. is.

In a written statement issued on Tuesday, Cameron said, “UK crypto and digital asset firms are desperately clear on their approach to UK crypto policy and the government’s vision for the UK crypto sector. need to be done,” he said.

The vision she referred to could be related to a statement by newly appointed British Prime Minister Rishi Sunak. Sunak, who was Chancellor of the Treasury in April 2021, proposed that the Bank of England and her HM Treasury create a task force to assess the creation of a central bank digital currency. A year later he recognized on the phone stablecoin as a valid payment method. He even said his ambition is to make the UK a global hub for crypto assets.

When Sunak stepped down as prime minister in July 2022, there were concerns about the future of cryptocurrencies in the UK.However, now that he is prime minister, he is expected to appoint a new prime minister who shares his views on UK crypto regulation.

Conclusion

Sunak’s appointment comes at a time when the country is facing economic and political challenges. He has yet to approve his ability to maintain his position in the coming months.

Meanwhile, it will be a long time before the Financial Services and Markets Bill is enacted. First, the draft is sent to the House of Lords, the upper house of parliament. If the bill is approved, it will be sent to Charles III for final approval.

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