The UK House of Commons yesterday gave its approval to a series of amendments to the Financial Services and Markets Bill, under which digital assets will be regulated in the financial services arena.
Andrew Griffith, a member of parliament, has noted the innovation will allow the Treasury to respond quickly to developments in the industry and provide a "flexible" approach to supervision.
According to him:
"The substance here is to treat 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."
A paragraph in the document clarifies crypto assets may be subject to the existing provisions of the Financial Services and Markets Bill 2000. The amendments also govern UK-registered companies.
The MP has added:
"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."