British lawmakers have voted in the House of Commons to recognize cryptocurrencies as regulated financial instruments in the country. The motion, introduced by representative Andrew Griffiths, was approved by the House of Commons after its second reading on 25 October. The Griffith move seeks to include crypto assets in services regulated by the Financial Services and Markets Act. As such, cryptocurrencies and payment stablecoins will be subject to the same legal regulations as other financial assets included in the Financial Services and Markets Act 2022. When Act is finally passed, the UK Treasury will have the power to enforce crypto market regulations.
Meanwhile, Griffiths said the Treasury Department would consult with relevant stakeholders to ensure the framework maximizes the benefits and addresses the risks associated with cryptographic activities. UK lawmakers have passed bills to regulate the crypto activity, including stablecoins, marketing campaigns and crypto-related crimes. Following the collapse of TerraLUNA, the UK launched a proposal in May requiring stablecoins to be subject to existing financial asset legislation. The bill also proposes to put crypto businesses under the supervision of the Bank of England to prevent widespread bankruptcy.
On August 1, the Financial Conduct Authority (FCA) of the United Kingdom presented a proposal to ban marketing activities encouraging investment in high-risk crypto assets. The British Parliament is also considering the Corporate Transparency and Financial Crimes Act to allow law enforcement to freeze and confiscate crypto assets involved in money laundering crimes.