Just this month we saw another proposal that has caused positive ripples concerning the recognition of crypto coins and digital assets in the UK. On 25th October the United Kingdom moved forward on the Financial Services and Markets Bill. This has hardened the future of cryptocurrencies and digital settlement assets in the UK.
The suggested Financial Services and Markets Bill proposes that a range of measures will be used to maintain and enhance the position of the UK as a global leader in financial services. The suggested bill also proposes to ensure that the digital asset and the cryptocurrency market will continue to deliver for individuals and businesses across the UK.
We were pleased to see that the suggested bill also reasserts the intention of the UK to become a global hub for cryptocurrency. Lisa Cameron, a member of Parliament, followed up on this news stating that crypto is firmly on the radar of lawmakers. She then added that there is still a lot of education and learning to be done.
The suggested Financial Services and Markets Bill also builds upon existing measures that are in place to broaden the regulations of stablecoins. The suggested bill also mentions the phrase ‘Digital Settlement Assets’ (also known as DSAs) as a new term.
According to the UK Government, crypto assets use some form of distributed ledger technology, also known as DLT. However, Digital Settlement Assets, also known as DSA, including stablecoins, given their potential to develop into a widespread means of payment.
Previously, it has been stated by the UK Government that there will be a package of measures. These measures have been created to improve regulation and clarity surrounding the worlds of cryptocurrencies and blockchain technology.
As we have stated in previous blogs, Rishi Sunak has expressed a real interest in certain areas of cryptocurrencies. He has been vocal in the support of digital currencies for central banks, and this can only be a good thing for the cryptocurrency market.
Crypto coins and digital assets are becoming more and more recognised as financial instruments. While they are yet to be scribed into law, it looks like this is the way that the UK is going.
The suggested bill will need to pass crucial steps with regards to The House of Lords and be approved by King Charles III – however, this can only mean good things for crypto owners, new and old.