UK Finally Recognizes Cryptocurrencies As Regulated Financial Instrument

In the UK, the lower house of the British Parliament, also known as the House of Commons, authorized the recognition of cryptocurrencies as regulated financial instruments on October 25.

According to the details of the draft bill, existing regulations surrounding payments-focused instruments will be applied to stablecoins.

The latest development comes soon after Rishi Sunak was appointed as the new prime minister of the UK. Crypto proponents are excited about the change in leadership, as Sunak is described as crypto-friendly.

Lawmakers Discuss Amendments

The proposal was introduced by Andrew Griffith, a parliamentarian, and adds cryptocurrencies to the Financial Services and Markets legislation.

The parliamentarians also discussed the proposed draft of the Financial Services and Markets Bill, which covers economic planning since Brexit. They also agreed on to make amendments that would involve regulating crypto assets.

Once the legislation passes, the country’s treasury department can implement regulations over the digital asset market. Until then, officials of the UK Treasury Department will speak to important stakeholders.

This way, they can ensure that the current framework enhances cryptocurrency’s benefits while mitigating the risks it involves.

Crypto Community Eyes New Prime Minister Rishi Sunak

The development comes after the Crypto and Digital Assets AAPG, called for the government to discuss its commitments to the digital asset sector.

Lisa Cameron, chair of the Crypto AAPG and an MP from the Scottish National Party issued a written statement this week, asking for clarity over the government’s efforts to establish crypto policy.

She said that crypto firms are in need of clearer rules if they are to operate and that the government should deliver upon its promises to the country’s crypto community.

It’s likely that the ‘vision’ Cameron referred to involved statements made by Rishi Sunak, the recently appointed PM. But the new prime minister isn’t only just starting to talk about crypto.

PM Rishi Sunak Aims To Make the UK a Global Crypto Hub

In fact, when he was a Chancellor of the Exchequer back in 2021, he explained that the HM Treasury and Bank of England should prepare a task force to oversee the development of a CBDC.

A year after that, he asked for the government to recognize that stablecoins are a valid method of payment. He goes on to elaborate that his goal is to make the country a global crypto hub.

After Sunak resigned from his position as the Chancellor of the Exchequer back in July, crypto proponents in the country were concerned about how the future of digital assets would turn out.

Now that Sunak has been appointed as the Prime Minister, crypto analysts expect that he will select a Chancellor who shares similar views on crypto regulation as him.