Initially, the Bill regulating the crypto market in the UK covered only stablecoins. However, at the end of October, Andrew Griffith, appointed as Treasury Financial Secretary on Thursday by the new Prime Minister Rishi Sunak, tabled an amendment including regulating all crypto assets.
Sunak is considered an enthusiast of the crypto market. While serving as Finance Minister in April this year, he disclosed that he intended to turn the UK into a ‘crypto assets hub’. With the new amendment, the proposal is considered the world’s first comprehensive set of rules to regulate the industry.
“This new clause amends the Financial Services and Markets Act 2000 to clarify that powers relating to financial promotion and regulated activities can be used for crypto and crypto-related activities”, the amendment highlights.
In addition, Bank of England vice-chairman Sam Woods reported that the country’s central bank intends to create a regulatory framework for systemic stablecoins, allowing fintechs and regulated institutions to invest in innovation.
The digital pound is also in the UK’s regulatory plans
According to the country’s economic secretary to the Treasury, Andrew Griffith, “crypto assets and blockchain technology can drive changes that will transform financial markets.”
He was optimistic about creating the digital pound, UK CBDC, as the Treasury and the Bank of England are also expected to consult on the topic in the coming weeks.
Other officials in the country have also spoken out in favor of moving forward with CBDC development and crypto assets regulation in the UK. “In the absence of a comprehensive regulatory regime, the UK risks becoming a hub for illicit finance and crypto assets activities”, said Labour spokesperson for Treasury affairs Tulip Siddiq. Check out our page to learn more about the advances and challenges of regulating the crypto assets sector in Brazil and worldwide.