This Vote Could Turn the UK into the Top Global Crypto Hub

The UK crypto industry is about to change following a series of changes over the past week. One of these changes is a bill passed proposing to have cryptocurrencies such as Bitcoin and Ether as financial instruments.

UK to become a global crypto hub

The recent economic and political turmoil in the United Kingdom has affected many industries, including the crypto space. On October 25, the UK parliament convened to discuss the proposed Financial Services and Markets bill focused on promoting economic recovery following Brexit.

There are several amendments to this bill, one of which recognizes Bitcoin and other cryptocurrencies as regulated financial instruments. Andrew Griffith, the financial services and city minister in the UK, proposed that crypto assets must be regulated similarly to other financial assets.

If crypto assets are brought under UK regulatory scope, it will be good news for the country’s web 3.0 & crypto market. A clear regulatory framework will not only portray the market as mature but also drive investments from traditional players.

The lawmakers have voted in favor of the amendment to the bill. The bill in question was introduced by Rishi Sunak, who was the finance minister at the time and has since been appointed as the new UK Prime Minister.

The bill contains a new clause that says “crypto assets could be brought within the scope of the existing provisions” under the Financial Services and Markets Act 2000.

The new proposals will also focus on companies offering crypto services in the UK. These companies could be regulated if they have the legal authority to operate in the country. The regulations will also pave the way for new players to enter the market.

According to Griffith, the measures will also allow the HM Treasury to have more flexibility when it comes to regulations. The Treasury will consult with industry stakeholders while using its authority to guarantee that the regulatory framework is adequate to cover the benefits and risks of cryptocurrency investments.

The UK parliament has passed the bill, but it is yet to be signed into law. Nevertheless, the appointment of Sunak as the new Prime Minister has been embraced by the crypto community. Sunak has previously made pro-crypto remarks. However, it remains to be seen whether he will transform the UK into a digital assets hub.

Crypto markets rally

The cryptocurrency market capitalization is back above $1 trillion for the first time in around three weeks. Bitcoin is also back above the $20K levels after trading within the $19K range for most of this month.

Ether also made a notable surge, breaking past six-week highs of $1500. However, the onset of a bull run is still far off, given that markets are showing signs of retracing. During the past 24 hours, the market cap has dropped by around 2.3% to $1.021 trillion.

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