UK regulation of crypto as financial producers closer
UK regulation of crypto as financial producers closer
- As part of the proposed measures, the Ministry of Finance would have the authority to change the definition of cryptoassets
- The final conclusion of the bill is set for November 3
The British legislator voted for a crypto -related change in the Financial Services and Market Bill, but it could take a while for the proposed rules come into force.
The House of Commons, the Lower House of the British Parliament, met on Tuesday to read the draft law, which adapts the financial services regulation to the British markets according to the Brexit.
It should convert the country's regulatory framework, including the determination of a series of measures that the country will make financially more competitive in the future.
The far -reaching finance law had previously tried to regulate stable coins as a means of payment. It now contains regulations for both stablecoins and crypto systems, in addition to a list of other proposed changes of several legislators.
The parliamentary member Andrew Griffith proposed to define the term cryptoasset as "every cryptographically secured digital presentation of values or contractual rights", which can be transmitted, stored or traded electronically and uses blockchain technology.
New powers that are outlined in a clause state that "financial instruments, financial products and financial investments" can include crypto systems. If the draft law is passed in its current form, the Ministry of Finance would have the authority to change this definition.
"This new clause changes the Financial Services and Markets Act 2000 to make it clear that the powers in relation to financial funding and regulated activities for regulating cryptoassets and activities in connection with cryptoassets can also be used. Cryptoasset is also defined with the authority to change the definition," wrote in the
Griffith brought in the change in parliament last week and signaled that the law would bring crypto into its scope. That came after the British Financial Conduct Authority in August
The measures described in the bill would affect restrictions on the promotion of cryptoassets. Alexander Tkachenko, CEO of the asset tokenization platform VNX, commented on the draft law and suggested that a variety of cryptoassets should be regulated differently. "Safety token, for example, is actually regulated as financial instruments in the EU," he said to block works, referring to digitized versions of real investments such as stocks and bonds. "Utility tokens do not meet such criteria and should not fall under the category of financial instruments. If the British legislature follows this way, this would correspond to the EU approach to regulate crypto systems and have a positive effect on the development of the crypto industry." RISHI SUNAK, who recently got the top post at the head of the United Kingdom, helped the formulation of the pioneering law when he was still a treasury. Sunak is celebrated as " Master of fintech " Great Britain want to make a global center for crypto technology and investments. "This is part of our plan to ensure that the British financial services industry is always at the top of technology and innovation," he said said at the beginning of this year about measures to introduce crypto regulation. As part of his crypto-friendly suggestions, he also suggested to launch an official Royal MINT collection in April. According to Marcus Sotiriou, analyst at the Digital Asset Broker Globalblock, Sunak could help create more clarity for crypto regulation in Great Britain if he pursues his goals from the beginning of this year. "The leadership of Liz Truss led to political and economic instability, since the £ almost reached parity with the dollar, shortly after she had started her role as Prime Minister. difficult months ahead. The draft law is now in third reading, after which it is transmitted to the upper house of parliament. A final conclusion is scheduled for November 3 at 5:00 p.m. British time. The recently crowned King Charles III must give his royal approval so that it becomes law. . . The Post UK Regulation of Crypto as Financial Product Edges Closer is not a financial advice.
Bill introduced himself, while Sunak was a treasure chancellor