UK Policymakers Vote for Regulating Crypto as Financial Instruments

Former UK finance minister and acclaimed crypto bull Rishi Sunak will soon replace Liz Truss as the country's prime minister. Now UK policymakers vote for regulating crypto as a financial instrument, which will help its wider adoption.

The UK is sending strong signals, bringing hope to the entire crypto industry. Former UK finance minister and acclaimed crypto bull Rishi Sunak will soon replace Liz Truss as the country's prime minister, which is strong news. Earlier this year, he advocated turning the UK into a full-fledged crypto powerhouse. Some of Sunak’s ambitions include turning stablecoins into a “recognized form of payment” in the UK while creating a “financial infrastructure sandbox” to help firms innovate in the sector.

Now there is another ray of hope for the crypto industry in the country. Parliament met on October 25 to debate the proposed financial services and markets bill to help rebuild the economy after the country's exit from the European Union. Several amendments to the bill have been proposed, including one to include cryptocurrencies as regulated financial instruments.

According to Cryptopotato, financial services and city minister, Andrew Griffith, said that crypto should be treated like other financial assets.
“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.”

Lawmakers then proceeded to vote in favor of keeping the amendment in the bill.

The markets legislation, introduced by the finance minister at the time, Rishi Sunak, has had a new clause that “clarifies that crypto assets could be brought within the scope of the existing provisions” of the Financial Services and Markets Act 2000.

The new measures could regulate crypto companies that are legally authorized to operate in the country and pave the way for new players to enter the space. It will also give the Treasury more flexibility with regulations, according to Griffith, who added:
“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.”

The bill, with its new provisions, has yet to be passed as law, however.

Rishi Sunak’s appointment as prime minister has been largely welcomed by the crypto community. He has been pro-crypto regulation in the past, but it remains to be seen whether his idea of crypto is the same as everyone else’s or just a state-controlled central bank digital currency.

© 2022, Eva Fox | Tesmanian. All rights reserved.

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