The proposal of Andrew Griffith proposes to incorporate crypto assets among the services governed by the Financial Services and Markets Act.
The motion, which was submitted by parliamentarian Andrew Griffith, was approved by the lower house on October 25 after the second reading.
Griffith’s proposal aims to regulate crypto assets as part of the planned Financial Services and Markets Bill.
Consequently, cryptocurrencies and stablecoins for payments will be subject to the same regulatory requirement as other financial assets under the Financial Services and Markets Act 2022.
Upon ultimate passage, the UK Treasury department will be authorised to regulate the cryptocurrency sector.
Griffith said that, in the meantime, the Treasury would communicate with key parties to ensure that the framework effectively maximises the advantages and addresses the dangers presented by crypto activity.
Legislators in the United Kingdom have been deliberating measures to control crypto activities such as stablecoins, marketing operations, and crypto-related crimes.
In May, after the collapse of TerraLUNA, the United Kingdom proposed subjecting stablecoins to current regulations for financial assets. To avoid widespread bankruptcy, the measure also proposes to place crypto companies under the supervision of the Bank of England.
The Financial Conduct Authority (FCA) of the United Kingdom filed a proposal to prohibit marketing efforts that encourage investing in high-risk crypto assets by August 1.
The U.K. government is also debating the Economic Crime and Corporate Transparency bill, which would provide law enforcement authorities with the authority to freeze and take crypto assets associated with money laundering offences.