Amid the current economic turmoil, the UK is emerging as a ray of hope for the crypto space. The United Kingdom is closer to creating a history and becoming the Global Cryptocurrency Hub as the parliament recently unanimously voted to regulate cryptos. The UK’s House of Commons, the parliament’s lower house, passed the Financial Services & Markets Bill to strengthen the country’s economy after its exit from the European Union.
Multiple amendments were introduced, but the focal point remained the inclusion of crypto assets in the list of regulated financial instruments. Rishi Sunak, the ex-Finance Minister under the leadership of Borris Johnson had earlier included a new clause which clarified to bring the crypt assets under the scope of the existing provision of the Bill.
“ The Substance here is to treat them (crypto) like other forms of financial assets and not to prefer them, but also to bring them within the scope of regulation for the first time,” said Griffith, the Financial Services & City Minister during the parliamentary meeting.
Meanwhile, the crypto space stuck up within a narrow range for quite a long time broke above the consolidation and surged high. Bitcoin price has surged by more than 8% and surged from levels around $19,300 to as high as above $21,000 with the announcement, Meanwhile, the second largest crypto, Ethereum also rose above $1500 after a tight brawl with the bears in the past month.
How Will the UK Become the Global Crypto Hub?
The new Prime Minister, Rishi Saunak’s administration voted in favour of cryptos to regulate them as legal tender. Moreover, the country now intends to become a hub of digital assets, distributed ledger technology & cryptos. The crypto analyst identified key areas where the country could boost crypto adoption.
Way back in April 2022, the Finance Minister, Rishi Sunak, introduced a plan to make the country a global crypto-asset technology hub and laid out a comprehensive roadmap for the UK’s crypto future. The roadmap consists of 3 main points,
- Bring Stablecoins under regulation to pave way for their use as the UK’s recognised form of payment
- The roadmap contains various measures to make the UK, the global hub for crypto assets technology & investment
- Development of new legislation for a financial market infrastructure sandbox that aims to aid crypto-firms to innovate
However, some analysts still believe more regulatory clarity is required for the UK’s crypto base to progress. The role of the private sector in his new regulatory landscape still remains unclear. Moreover, the government’s plans to safeguard the interest of the market participants & institutional stakeholders remain undefined. Hence, this clarity seems to be much required to witness a true change in the UK’s policies towards Crypto.
UK’s CBDC – The Britcoin!
The UK’s central bank appears to have well-researched plans for the country’s CBDC (Central Bank Digital Currency) Britcoin. Rishi Saunak, the PM, is one of the early advocates for the Bank of England’s CBDC. Many believe, under the administration of pro-crypto PM, the CBDC & the other crypto-related plans could enjoy a renewed focus.
The PM earlier has also expressed his interest in other areas of crypto like the creation of the Royal Mint Non-Fungible Token(NFT).
The inclusion of crypto as a legal tender has quite a long way to go before they are passed into law. The bill in the coming days may go through the House of Lords or the Upper House of the Parliament. Later, the amendments could get a final consideration following Royal approval by King Charles III.
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