The crypto market continues to struggle under the weight of current macroeconomic conditions. As the rest of the market continues to struggle to find investors who want to invest in the crypto market as a whole, countries are starting to take notice of what the rest of the market has to offer.
In fact, it is not governments of different countries who are looking to understand more about the crypto market as a whole. Instead, various companies and traditional financial institutions are also more interested in working in a market that has a lot of growth potential.
Therefore, it has become very common to see big cryptocurrencies also working together with companies like Visa and MasterCard. Furthermore, some governments are also working with different teams to create their respective crypto software.
But as more and more cryptocurrencies start becoming popular as a service and as a product, the need for proper regulation is also becoming more prevalent. In fact, many of the bigger names in the industry are already starting to suggest that some form of regulation should be set on the market. And in an effort to better regulate the market, the UK now recognizes cryptocurrencies as financial instruments.
Giving the Market Proper Regulation
Cryptocurrencies have become one of the most successful, popular, and easy-to-enter financial markets in the world at the moment. But despite the market itself being incredibly lucrative, the truth of the matter is that most countries and regulators did not see them as such.
However, with this new confirmation from the House of Commons that crypto is a financial asset worth regulating. This goes to show that countries and companies are willing to give these cryptocurrencies the attention that they deserve.
Law for Stablecoins Extends to Cryptocurrencies
While the UK has its fair share of legislative problems to work through, it has yet to develop distinct crypto legislation on par with MiCA. Therefore, for now, they decided on a more temporary decision, which was to make an amendment to the already established bill for stablecoins.
This was a clever decision, which was able to save the House of Commons a considerable amount of time. With most of the rules and regulations for stablecoins also reflecting crypto, trading will become very different very quickly.
A New Age of Regulation
With the UK parliament now taking this stance, this can be a major turning point for countries and how they treat cryptocurrencies. Therefore, many countries will now start working on providing better-regulated crypto space to help people of all experience levels.
Better regulation will especially help investors who are new to the market and are still struggling to find their footing.