- Last week, Prime Minister Liz Truss announced her resignation.
- The lower chamber of Parliament approved the bill.
The economy of the UK has been in steady decline. Inflationary worries and the energy crisis are only two of many problems that the public has had to face recently. And in the middle of it all, last week’s Prime Minister Liz Truss announced her resignation.
Now that the previous prime minister resigned, Rishi Sunak is the new one. Sunak is crypto-friendly because he wants to turn the UK into a hub for crypto. The scenario has led MPs in the United Kingdom to decide to treat cryptocurrencies like other regulated financial instruments and products.
Bringing Crypto Under Regulation
The lower chamber of Parliament (known as the “House of Commons”) approved the measure. The proposed Financial Services and Markets Bill was debated in preparation for a line-by-line reading of the bill. Andrew Griffith presented the proposal which included cryptocurrency exchanges and trading as a regulated financial service in the bill. Specifics on how stablecoins must be regulated are included in the bill.
Griffith, the financial services and city minister stated:
“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.”
If passed, the crypto bill would have an effect on unlicensed crypto enterprises and provide for the regulation of cryptocurrency marketing.
Griffith said that the Treasury would be consulting with a wide range of interested parties and experts in the field as they implement the framework and evaluate its potential advantages and drawbacks. For the measures to become law, the House of Lords must now give its final approval.
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