The United Kingdom unveiled its “Financial Services and Markets” bill, which includes a set of legislation covering guidelines on the safe adoption of crypto-assets in Parliament on Wednesday.
Stablecoins and “Digital Payment Assets” Will Be Regulated As A Mode Of Payment In The UK With The Bill
Nadhim Zahawi, who was appointed Finance Minister earlier this month following Rishi Sunak’s resignation, said that under the bill stablecoins and “digital payment assets” would be regulated as a form of payment in the UK.
“While promoting these new innovations, the bill will also enable the creation of Financial Markets Infrastructure Sandboxes that increase the efficiency, transparency and flexibility of new products by allowing firms to test the use of new technologies and applications in financial markets,” the Treasury said in a press release.
The bill states that the government must consult with the Bank of England, the PRA and the FCA before changes are made.
The bill, which repeals hundreds of laws of the European Union, is causing controversy in the UK as it paves the way for ministers to “cancel” regulatory decisions taken by the Bank of England.
While embracing Sunak’s views on this issue, Zahawi also pushes for a growth-oriented “urban setting” approach.
For the bill to enter UK law, it will need to be passed by MPs in both Parliament and the House of Lords.
While the altar is on duty cryptocurrencies took a clear stance on the issue. In April, he started the process on how stablecoins are regulated and had NFTs to be released by the Royal Mint this summer.
*Not investment advice.