The United Kingdom’s newest prime minister, Rishi Sunak, is a huge crypto enthusiast. As Sunak supports cryptocurrency it has been made clear that he wants to turn the UK into a major center for it. In the midst of this, UK Lawmakers have decided to accept cryptocurrencies as regulated goods and financial instruments.
The inclusion of stablecoins in the draft report was approved by the House of Commons as well. The UK’s parliament has decided to publish new stablecoin regulations on Thursday. In a few weeks, the UK government also intends to hold a discussion on cryptocurrency regulations and the digital pound.
Global Cryptocurrency Usage Soars
The use of cryptocurrencies is expanding globally. The required regulations are being introduced by governments all around the world. The focus of governments is likewise shifting to stablecoins. This is because they are less volatile and pegged to either the value of the US dollar or the pound.
Recently appointed Economic Secretary to the Treasury Andrew Griffith claimed that specific cryptocurrency assets and distributed ledger technologies could bring about seismic shifts in the financial sector. The financial security of the users is also at risk, he added.
Griffith further stated,
“We wish to tentatively seize those opportunities … not fall behind other markets, but also proceeded in a cautious way. The government’s position is to start with those most stable, least volatile coins likely to be used by intermediaries as a settlement currency and then we will go forward and consult from there.”
Griffith further stated that to implement the framework and weigh its risks and benefits, the Treasury will communicate with numerous stakeholders and business leaders. As of right now, the House of Lords must give the regulations its final approval. This is necessary since King Charles III of England holds the ultimate authority.
Griffith also brought up the potential for a digital pound to be issued. In the following weeks, this issuance will also be the subject of consultations between the Treasury and the Bank of England.
The new crypto regulation bill received a unanimous vote of support from the committee’s legislators. It seems as though the House of Lords must currently approve the rules.