Rishi Sunak wants to seize crypto opportunities, legislative committee approves stablecoin rules

by Arthur · October 28, 2022

British lawmakers agreed on new rules for stablecoins on October 27, as the government promises to consult on crypto regulations soon.
Rishi Sunak, the new UK Prime Minister stated that he wants to make the UK a cryptocurrency hub.
Lawmakers are looking at government proposals to regulate stablecoins that try to maintain their value against the pound.

With the appointment of Rishi Sunak as the UK’s new Prime Minister, advocates believe the UK could become a “crypto hub”. A UK parliamentary committee, The Crypto and Digital Assets All Party Parliamentary Group (APPG), chaired by Lisa Cameron, a Scottish National Party Member of Parliament (MP), has called on the government to provide further clarity on its commitment to cryptocurrencies.

Also read: TUNE IN: Hong Kong to legalize trading in Bitcoin and crypto

UK stablecoin rules approved by legislators

Rishi Sunak’s government wants to try to seize crypto opportunities and widen the regulatory net to include digital assets. The Crypto and Digital Assets All Party Parliamentary Group (APPG) recently called on the UK government to provide clarity on its obligations towards crypto.

Following Sunak’s appointment as the UK’s new Prime Minister, advocates believe the UK could become a “crypto hub”. In fact, the process may have already started, when on October 25 the lower house of the British Parliament, the House of Commons, voted to recognize cryptocurrencies as regulated financial instruments and products.

The recognition of cryptocurrencies as regulated financial products will enable the adoption of crypto on a larger scale in the UK. From using stablecoins and cryptocurrencies as means of payment at merchants to using digital assets to settle transactions between intermediaries, the regulation opens up more opportunities for crypto traders and holders in the UK.
Lisa Cameron, Chair of APPG issued a statement to the media, saying:

UK crypto and digital asset firms desperately need clarity on the UK’s approach to crypto policy and for the government to deliver on its vision for the UK crypto sector.

Cameron argued that regulatory clarity would provide business certainty to cryptocurrency projects, adding,

We need a proportionate approach to regulation that balances risk, ensures high levels of consumer protection and does not hinder growth and innovation in the sector.

Andrew Griffith, Chancellor of the Exchequer believes that the UK government’s position is to start with stablecoins, which are linked to a conventional asset or fiat currency such as the dollar or pound, because they are the least volatile digital assets. Stablecoins benefit from the fact that they can be used by intermediaries as a settlement currency. Following their integration, the UK government should seek consultation on next steps, adds Griffith.