UK parliamentarians in favor of regulating crypto as financial instruments

On October 25, the Parliament assembled to discuss a planned Financial Services and Markets Bill for the nation’s post-EU economic recovery. The bill was subjected to several amendments, among which one proposed the inclusion of crypto as regulated financial instruments.

Financial services minister Andrew Griffith stated in his reports that cryptocurrencies should be regulated similarly to other financial assets.The Financial Services and Markets Act of 2000 features a new clause that “clarifies that crypto assets could be brought within the scope of the existing provisions” which was introduced by the finance minister.

“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,” said the reports. 

According to Griffith, it will also grant the Treasury more freedom in establishing rules. “The Treasury will consult on its approach with industry and stakeholders ahead of using the powers to ensure the framework reflects the unique benefits However, the bill has yet to become law despite its new provisions,” he adds.

Following that, lawmakers voted to maintain the modification in the bill which could result in  some good news for the crypto business.

The government guidelines might regulate cryptocurrency businesses that are legitimately allowed to operate in the nation and open the door for strong competition. 

Crypto community welcomes new prime minister

The crypto community has recently welcomed Rishi Sunak’s appointment as the UK’s prime minister. Although he has previously supported cryptocurrency regulation, it is unclear whether his view of crypto is the same as everyone else’s or simply a state-controlled central bank digital currency (CBDC).

The cryptocurrency market has once again reached $1 trillion for the first time in three weeks. Ethereum has increased by a remarkable 11% during the recent period, while Bitcoin has managed to get back to 5%. Celebrations, however, would be premature since there hasn’t been a breakout yet and the market is still down.

As TheCoinRise reported, BitMEX co-founder Arthur Hayes recently commented on the ongoing uptrend in the crypto market and issued a warning around the reversal.