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UK lawmakers want crypto assets to be brought into the fold of the country’s regulatory framework for financial assets.
It’s another win for the crypto industry as UK lawmakers have agreed on a new amendment to the existing crypto regulations. Per the agreement, the lawmakers will now recognize crypto assets as one of the regulated financial instruments within the country. This follows after the lower house of the Parliament – the House of Commons, met on Tuesday to deliberate on UK’s economic strategy for life after Brexit.
To do this, the lawmakers took to a detailed reading of a proposed “Financial Services and Markets Bill.” And eventually, they made recommendations that some parts of the bill be revised.
Among such recommendations was one put forward by parliamentarian Andrew Griffith. He proposed that crypto assets should be considered regulated financial services in the country. The financial services and city minister further explained that his proposal does not mean that crypto should be treated preferentially. Rather, he believes that they should be brought into the fold of the country’s regulatory framework for financial assets.
Following Griffith’s arguments, lawmakers voted largely in favor of keeping his proposal in the draft bill.
Implication of the Amendment on UK’s Crypto Regulations
Without a doubt, the local crypto industry is currently in a joyous mood. Firstly as a result of the announcement of crypto-friendly Rishi Sunak as the country’s new Prime Minister. The ongoing efforts of lawmakers to bring inclusion to digital assets on a broader scale is also a welcome development.
Details of the new provision hint at a new meaning to the term “crypto asset.” And as Griffith noted, a newly-added clause 14 proves beyond reasonable doubt that crypto assets may also be included in the existing provisions of the Financial Services and Markets Act 2000.
The measures will seek to curb excessively flattering crypto promotions and ban such firms that fail to get operational licenses. And by including crypto in the bill, the country’s Treasury will now be able to keep abreast of developments in the crypto sector. But more importantly, the Treasury will now be able to build regulations that are in line with the UK’s broader goals of regulating the entire financial services sector.
For now, however, the Treasury will keep consulting on its approach, with major stakeholders within the crypto industry.
Meanwhile, it is also worth noting that the amendments are still subject to approval by the House of Lords. That is the upper house of the Parliament. After the bill passes the House of Lords, it will then be given a final read before royal approval by King Charles III. It is only then, that it becomes an established law.