UK MPs Vote to Include Crypto in Financial Markets Bill

A new amendment to the Financial Services and Markets Bill could regulate crypto assets like bitcoin along with stablecoins.

Lawmakers in the House of Commons voted in favor of a proposal by Member of Parliament Andrew Griffith to bring crypto under the banner of regulated financial services.

FSM Bill Will Put Crypto Under Existing Act

The proposal was part of a list of amendments to the original bill that would regulate payment forms to stablecoins. The proposal brings crypto under the Financial Services and Markets Act 2000 framework. This allows ads to be regulated and to give the boot to unauthorized companies.

“The substance is here to cure them

Not to like and like other forms of financial assets, but to bring them under regulation for the first time,” Griffith said.

The bill was introduced while Rishi Sunak was the Chancellor of the Exchequer. So far, lawmakers have debated the bill in two sittings on October 19, 2022 and one on October 25, 2022. Before being passed into law, the bill must go through the House of Lords and be subject to another review. , after which it can be signed into law by His Majesty King Charles III.

In similar news, the Financial Sector Conduct Authority of South Africa announced on October 19, 2022 that it would recognize crypto as a financial product with immediate effect.

Will bitcoin need to be hedged with the new PM?

The news of possible regulation of crypto comes after a spike in sterling transaction volume on crypto exchanges. After the introduction of tax cuts by former British Prime Minister Liz Truss on September 23, 2022, Britons flooded exchanges to buy bitcoin with sterling, leading to a 233% increase in transaction volume compared to August 2022. The spike came with the pound struggling against the major global benchmark. Currencies such as the US dollar.

Advocates initially touted bitcoin as a hedge against inflation because the currency is issued with a maximum supply of 21 million at a given time. But its correlation with equities has weakened this argument earlier this year. Furthermore, the recent appointment of Rishi Sunak as Britain’s new prime minister could mean more conservative fiscal policies for the UK in the near future, meaning stability for the pound. Sunak opposed the Truss’s unfunded tax cut policies. The failure of economic policy justified the craze when it proved disastrous for the UK economy. After becoming prime minister, Sunak promised “honesty, professionalism and accountability at every level of the government I led”.

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