The proposal represents another wave of popularity for Bitcoin and cryptocurrencies in the UK as the digital assets continue to gain traction.
The UK made progress on the Financial Services and Markets Bill, tightening its outlook for the Bitcoin cryptocurrency and “digital settlement assets” in the nation on October 25.
The proposed bill proposes “a range of measures to maintain and enhance the U.K.’s position as a global leader in financial services, ensuring the sector continues to deliver for individuals and businesses across the country.”
Lisa Cameron, a member of parliament and the head of The Crypto and Digital Assets All-Party Parliamentary Group, said that the bill “reasserts the U.K.’s intention to become a global cryptocurrency hub.”
The law expands upon current stablecoin regulating provisions and uses the term “Digital Settlement Assets” (DSA) in place of “crypto assets,” moving away from the use of the phrase “crypto assets.” The U.K. government claims that DLT is used by crypto assets, whereas stablecoins are included in DSA “given their potential to develop into a widespread means of payment,” according to the government.
The United Kingdom’s government previously stated that a “package of measures” targeted at enhancing regulation and clarity surrounding blockchain, cryptocurrency, and Bitcoin will be implemented.
The legalization of cryptocurrencies and digital assets as financial instruments is still pending. Important conditions must be met for the measure to become law: Prior to final royal assent by the new monarch, King Charles III, the House of Lords must approve or amend the bill.