UK To Equate Cryptocurrencies to Financial Instruments

One of the paragraphs in the document states that crypto assets may be subject to the current Financial Services and Markets Bill 2000. It is worth mentioning that the amendments also govern the activities of the UK-registered legal entities.

«The Treasury will consult on its approach with industry and stakeholders ahead of using the powers to ensure the framework reflects the unique benefits and risks posed by crypto activities,» a member of parliament stated.

DSA now includes stablecoins “given their potential to develop into a widespread means of payment.”

Recall that in July this year, the Financial Services and Markets Bill was introduced to the UK Parliament.

In addition, Deputy Governor of the Bank of England, Jon Cunliffe, has earlier proposed to extend existing financial regulations to cryptocurrencies by analogy to traditional financial assets.

It is worth noting that the former Chief Secretary to the Treasury and a proponent of digital assets, Rishi Sunak, has recently become Prime Minister of the United Kingdom.