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UK has a new name for stablecoins and a new bill to regulate crypto

Updated: Jan 3


Crypto

On October 25, the United Kingdom advanced the Financial Services and Markets Bill, solidifying its vision for Bitcoin cryptocurrency and "digital settlement assets" in the country.


The proposed legislation includes "a variety of measures to maintain and enhance the United Kingdom's position as a global leader in financial services, ensuring the sector continues to deliver for individuals and businesses across the country."


The bill reaffirms the United Kingdom's intention to become a global cryptocurrency hub, as stated by Lisa Cameron, a member of parliament and chairperson of the Crypto and Digital Assets All-Party Parliamentary Group. She told Coin telegraph in an exclusive interview over the weekend that crypto is on lawmakers' radar, but that there is still a lot of education to be done.


The bill expands on existing regulations for stablecoins and introduces "Digital Settlement Assets" (DSA) as a new term, replacing "crypto assets." "Crypto assets use some form of distributed ledger technology (DLT)," according to the UK government, whereas DSA includes stablecoins "given their potential to develop into a widespread means of payment."


The UK government previously stated that a "package of measures" will be implemented to improve regulation and clarity surrounding blockchain, crypto, and Bitcoin.


In other news, Rishi Sunak, the new Prime Minister of India, has expressed interest in certain aspects of cryptocurrency, including his support for the creation of a Royal Mint nonfungible token.


The youngest Prime Minister in history has also been vocal in his support for central bank digital currencies.


The legalization of cryptocurrency and digital assets as financial instruments has yet to be enacted. The bill must go through several critical stages: Before final royal approval by the new monarch, King Charles III, the House of Lords must approve or amend the bill.

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