UK lawmakers votes to recognize crypto as regulated financial instrument

UK MPs have voted to allow cryptocurrencies as domestic regulated financial instruments.

The proposal, put forward by Congressman Andrew Griffiths, was approved by the House of Representatives. approval After the second reading on October 25th.

Griffith’s proposal seeks to include crypto assets as part of the services regulated by the proposed Financial Services and Markets Bill.

As a result, alongside payment stablecoins, cryptos are subject to the same regulatory provisions as other financial assets included in cryptocurrencies. Financial Services and Markets Act 2022.

Once the law is finally passed, the UK Treasury will be empowered to enforce regulations on the crypto market.

In the meantime, Griffiths said the Treasury Department will consult with relevant stakeholders to ensure the framework appropriately maximizes benefits and addresses risks posed by cryptocurrency activities.

UK crypto bill

UK lawmakers are sitting on a bill that seeks to regulate crypto activity, including stablecoins, marketing activities, and crypto-related crime.

Following the demise of TerraLUNA, the UK launched a proposal in May to bring stablecoins under existing legislation on financial assets. The bill also proposed placing cryptocurrency companies under Bank of England regulation to prevent widespread bankruptcy.

By August 1st, the UK’s Financial Conduct Authority (FCA) has submitted a proposal to ban marketing activities that encourage investment in risky crypto assets.

The UK Parliament is also considering an Economic Crime and Corporate Transparency Bill that would give law enforcement powers to freeze and seize crypto assets involved in money laundering crimes.