Downing Street continued its drive for its Financial Services and Markets Bill on Tuesday to ink its position on using cryptocurrencies such as Bitcoin, following a crucial vote in the House of Commons in favour of the bill.
Commons scrutinised the legislation at the time to determine amendment and determine its value in post-Brexit Britain’s economic strategy.
The Bill is one of Rishi Sunak’s first successes as Prime Minister of the UK following the resignation of former PM Liz Truss, and aims to incorporate digital assets under the Financial Services and Markets Act 2000, which regulates financial activities unauthorised by the Government.
What’s in the Bill?
The bill advocates using “digital settlement assets” along with numerous measures “to maintain and enhance the UK’s position as a global leader in financial services,” it said.
Doing so would allow the UK to reach its goal of becoming a major hub for cryptocurrencies by implementing digital settlement assets (DSAs) rather than “crypto assets.”
According to the Government, the change in definition comes as it states crypto assets use “some form of distributed ledger technology (DLT)” compared to DSAs and stablecoins, which have greater potential to “develop into a widespread means of payment.”
Downing Street stated it would launch a “package of measures” to improve governance of cryptocurrencies, months after Rishi Sunak, then-Chancellor of the Exchequers at the time, backed digital monies after creating a Royal Mint non-fungible token (NFT) under the Johnson Administration.
As Prime Minister of the UK, he continues his push for cryptocurrency acceptance, namely central bank digital currencies (CBDCs).
Despite this, the bill must still face the House of Lords before receiving royal ascent under King Charles III.
The recognition of crypto and digital assets as financial instruments is yet to be scribed into law. The bill must pass crucial steps: The House of Lords will be required to approve or amend the bill before final royal approval by the new monarch, King Charles III.
