In the United Kingdom (UK), they have moved forward with a cryptocurrency regulation bill. The country also has a new name for stablecoins.

Remain a global leader in financial services

The bill passed for the first time on October 18 recommended. It suggested that there would be ‘a series of actions to maintain and enhance the UK’s position as a world leader in financial services’. This is so that the sector continues to excel for individuals and companies throughout the country.

British intentions were once again confirmed in the proposal. Their intention remains to be a global crypto hub. Crypto is therefore on the radar of lawmakers in the country, even though there is still a lot to learn about the (relatively new) technology.

The bill builds on existing measures to expand regulations to include stablecoins. They have coined a new term for stablecoins: “Digital Settlement Assets,” or DSAs for short. This will eliminate the use of ‘crypto assets’. According to the UK government, crypto assets use some form of distributed ledger technology (DLT), while DSA includes stablecoins, given their potential to develop into a means of payment.

New steps are coming

According to the British government, a new package of measures will be introduced. This is to significantly increase regulation and clarity around blockchain and crypto.

It should be noted that the UK recently had a new prime minister, Rishi Sunak. He has previously expressed interest in cryptocurrencies, such as his support for the creation of the Royal Mint Non-Fungible-Token (NFT).

Finally, the recognition of cryptocurrencies and digital assets as financial instruments is not yet enshrined in UK law. At present this is not the case. The bill still has to go through several important steps for this: The House of Lords must either approve or amend the bill before the new king, King Charles III, receives final royal approval. It is therefore unknown whether and when exactly the law will be approved and whether amendments will have to be made.