The UK has renamed stablecoins and proposed new crypto regulations
October 28, 2022 7:12 AM
The proposal is further validation of Bitcoin, cryptocurrency, and digital asset markets in the UK.
The United Kingdom's position on Bitcoin (BTC) and other "digital settlement assets" hardened on October 25, as the country made progress on the Financial Services and Markets Bill.
The proposed bill includes "a range of measures to maintain and enhance the United Kingdom's position as a global leader in financial services, ensuring the sector keeps providing for both individuals and companies all over the country."
Representative Lisa Cameron, chair of the parliamentary group on cryptocurrencies and digital assets, echoed the sentiment that the bill reaffirms the United Kingdom's intention to become a global cryptocurrency hub.
The bill expands on previous efforts to regulate stablecoins and replaces the term "crypto assets" with "Digital Settlement Assets" (DSA). Given their potential to become a widespread form of payment, the UK government sees stablecoins as a DSA, while "crypto assets use some form of distributed ledger technology (DLT)" (the former).
The United Kingdom government has stated that it plans to implement a "package of measures" to better regulate and clarify matters related to blockchain technology, virtual currencies, and Bitcoin.
Rishi Sunak, the new prime minister, has shown an interest in crypto in other ways, such as by backing the development of a nonfungible token for use at the Royal Mint.
The original "Royal Mint NFT," which Rishi Sunak advocated for, has yet to be implemented. Data Origin: HMRC
The newest resident of 10 Downing Street is also the most vocal advocate for digital currencies backed by national governments.
There is still no codified legal framework for the acceptance of cryptocurrencies and other forms of digital asset as legal tender. In order for the bill to become law, it must go through several necessary procedures: The new monarch, King Charles III, will need the approval or amendment of the House of Lords before he can sign the bill into law.