Market Analysis Report (26 Oct 2022)

Lawmakers in the United Kingdom have voted in favor of a bill that looks to place bitcoin and other digital assets under existing financial instrument law, enabling existing regulatory infrastructure to build a framework.

The lower house of Parliament, known as the House of Commons, read the Financial Services and Markets bill, which seeks to establish a framework for the ongoing regulation of digital assets. The draft bill includes extensions for existing regulations, which would apply current laws regarding payments-focused instruments to stablecoins.

Andrew Griffith, the financial services and city minister said:

“The substance here is to treat them [digital assets] 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.”

Griffith explained that clause 14, a new addition, clarifies that “crypto asset could be brought within the scope of the existing provisions.” According to the minister, the Treasury will have ongoing consultations with existing stakeholders in the ecosystem and with industry experts to ensure the developing framework empowers the crypto ecosystem.