- The UK Lawmakers vote in favor to regularize crypto assets as financial instruments.
- Andrew Griffith noted that the purpose of passing the law is to treat crypto like other forms of financial assets.
- PM Rishi Sunak aims to establish the UK as a crypto hub.
The House of Commons voted in favor of regulating crypto assets as financial instruments and products in the UK. The proposed legislation already included measures to apply current laws, that are primarily focused on payments, to stablecoins.
Several amendments to the law have been submitted for consideration by parliamentarians, including one proposed by Lawmaker Andrew Griffith to bring digital currency assets within the scope of the nation’s regulated financial services.
Andrew Griffith stated:
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
Furthermore, Griffith noted that the sole purpose of passing the law is to treat crypto like other forms of financial assets and to bring them within the scope of regulation for the first time.
This week, the parliament announced the appointment of Rishi Sunak as the new Prime Minister of the UK. Sunak was the former Finance Minister under former Prime Minister Boris Johnson. Sunak declared he intended to establish the UK as a crypto hub. Sunak played a role in establishing the Financial Services and Markets.
Earlier, under the reign of the former Finance Minister, Kwasi Kwarteng, the UK government was considering different legislative paths to regulate stablecoins and determine crypto’s role in the economy. The sudden departure of Kwarteng left the fate of draft laws to regulate stablecoins in the hands of the new minister.
In related news, South Korea’s President Yoon Suk-Yeol took an oath to implement a set of crypto-friendly policies in the country. Crypto was categorized as a virtual asset by National South Korea’s National Assembly Research Service (NARS) According to a notification published last week, the tax threshold for income derived from virtual assets should be 2.5 million won, or $1,946, with a tax rate of 20%.
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