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

• UK 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 poring over government proposals to regulate stablecoins that seek to maintain their value against the pound. 

With the appointment of Rishi Sunak as the UK’s new prime minister, proponents believe the United Kingdom could turn into a “crypto hub.” A UK parlimentary 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 for the government to provide further clarity on its commitment to cryptocurrencies. 

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UK stablecoin rules approved by lawmakers 

Rishi Sunak’s government wants to tentatively seize crypto opportunities and widen the regulatory net to include digital assets. The Crypto and Digital Assets All Party Parliamentary Group (APPG) recently called for the British government to provide clarity in terms of commitments towards crypto. 

After Sunak’s appointment as UK’s new prime minister, proponents believe that the United Kingdom could turn into a “crypto hub.” Indeed, the process may already have started as on October 25, the lower house of the UK Parliament, the House of Commons, voted in favor of recognizing cryptocurrencies as regulated financial instruments and products. 

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

UK crypto and digital asset firms desperately need clarity over 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 that doesn't hamper growth and innovation in the sector.

Andrew Griffith, Economic Secretary to the Treasury believes that the UK government’s position is to start with stablecoins, which are pegged to a conventional asset or fiat currency like the dollar or the 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 ought to seek consultation on next steps, adds Griffith. 

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