UK Starts Legislative Process to Regulate Virtual Currency

Bill Passed in the House
Bitcoin Recovers to $20,000

(Photo by Yonhap) [Image source=Yonhap News]

[Asia Economy Reporter Yujin Cho] A bill regulating virtual currencies like financial products has passed the House of Commons in the UK. Although this marks the first step in Parliament's effort to bring virtual currencies under institutional regulation, there are still many hurdles before it becomes law.

According to CoinDesk and others on the 25th (local time), the UK House of Commons passed the Financial Services and Markets Bill, which regulates virtual currencies such as Bitcoin like existing financial products.

This bill, which broadly addresses the UK's economic strategy post-Brexit, includes provisions to bring virtual currencies under government regulation and to establish a policy framework for regulating stablecoins.

Andrew Griffith, Deputy Chief Secretary to the Treasury, said about the significance of the bill's passage, "It is not about recognizing virtual currencies as other financial assets, but about bringing digital assets within the scope of regulation."

The bill was introduced during the tenure of Rishi Sunak as Chancellor of the Exchequer, who officially took office as UK Prime Minister on the same day, succeeding Liz Truss. At that time, Sunak expressed his intention to "make the UK a hub for crypto technology," showing a pro-virtual currency stance.

The bill passed by the House of Commons on this day must go through a vote in the House of Lords and receive royal assent from King Charles III before it can be enforced.

According to the virtual currency specialized media CoinDesk, as of 7:20 PM Eastern Time on the same day, the price of Bitcoin recorded $21,112.84, up 3.99% compared to 24 hours earlier.

This is the first time Bitcoin has surpassed $20,000 since the 6th of this month. CoinDesk reported, "Bitcoin surged, crossing the psychologically important $20,000 threshold."

Ethereum, the second-largest coin by market capitalization, also rose more than 10%, briefly surpassing $1,500. This is the highest point since Ethereum's 'Merge' upgrade in mid-last month. Cardano and Solana, both within the top 10 by market cap, rose more than 13% and 9%, respectively.

It is analyzed that the recent rebound in the cryptocurrency market was driven by the revival of investor sentiment toward risk assets, following the US stock market's return to an upward trend.

This content was produced with the assistance of AI translation services.