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HomeMore NewsBanking & FinanceUK Parliament votes to recognize cryptocurrencies as regulated financial instruments

UK Parliament votes to recognize cryptocurrencies as regulated financial instruments

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England (Commonwealth Union) _ The proposed Financial Services and Markets Bill, which essentially establishes the United Kingdom’s post-Brexit economic strategy, was read aloud in the House of Commons, the lower house of Parliament. The politicians discussed a number of amendments to the measure, including one proposed by Democrat Andrew Griffith that would have incorporated cryptocurrency holdings into the country’s regulated financial services.

Stable coins are cryptocurrencies linked to the value of other assets like the U.S. dollar or gold, and the proposed law already included provisions to expand current restrictions to stable coins with an emphasis on payments. Before lawmakers overwhelmingly voted to keep the amendment in the legislative package, Minister of Financial Services and City Griffith said during a parliamentary meeting that the amendment’s: “substance is to treat them [crypto] like other forms of financial assets and not to prefer them, as well as to bring them within the scope of regulation for the first time.”

Similar to how it did when Rishi Sunak was recently named the new Prime Minister of the country, the local cryptocurrency market will probably support efforts to broadly legalize digital assets. The markets law and the ensuing stable coin regulations were initially introduced while Sunak was the finance minister in the Boris Johnson cabinet.

Griffith continued: “The Treasury will discuss on its approach with business and stakeholders before exercising the authorities in order to ensure that the framework appropriately captures the specific benefits and risks provided by crypto activity.”

However, there is still a long way to go before the restrictions are enacted into law. Before King Charles III grants his royal assent and the amendments are given their final review, the statute must first pass the House of Lords, the upper chamber of Parliament.

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