In the same week that the UK got another new prime minister, policymakers decided to recognize crypto assets as financial instruments.
A ray of light for the crypto industry has emerged amidst all the recent economic and political turmoil in the United Kingdom.
Parliament convened on Oct. 25 to discuss a proposed Financial Services and Markets Bill for economic recovery following the country’s exit from the European Union. Several amendments to the bill were proposed, including one to include cryptocurrencies as regulated financial instruments.
According to reports, financial services and city minister, Andrew Griffith, said that crypto should be treated like other financial assets.
“The substance here is to treat them [crypto] like other forms of financial assets and not to prefer them, but also to bring them within the scope of regulation for the first time,”
Lawmakers then proceeded to vote in favor of keeping the amendment in the bill.
The markets legislation, introduced by the finance minister at the time Rishi Sunak, has had a new clause that “clarifies that crypto assets could be brought within the scope of the existing provisions” of the Financial Services and Markets Act 2000.
The new measures could regulate crypto companies that are legally authorized to operate in the country and pave the way for new players to enter the space. It will also give the Treasury more flexibility with regulations, according to Griffith, who added:
“The Treasury will consult on its approach with industry and stakeholders ahead of using the powers to ensure the framework reflects the unique benefits and risks posed by crypto activities.”
The bill, with its new provisions, has yet to be passed as law, however.
Rishi Sunak’s appointment as prime minister has been largely welcomed by the crypto community. He has been pro-crypto regulation in the past, but it remains to be seen whether his idea of crypto is the same as everyone else’s or just a state-controlled central bank digital currency.
Crypto Markets Jump
Crypto market capitalization has topped $1 trillion again for the first time in three weeks, with a 5% gain on the day.
Bitcoin has made it back above the psychological $20K level and was trading up 4.6% on the day at $20,206 at the time of writing.
Ethereum has surged a whopping 10.2% over the past 24 hours to reach a six-week high of $1,484, according to CoinGecko.
However, celebrations would be premature as markets are still within their range-bound channel, and there has been no breakout yet.