British Government advances financial markets bill to pave the way for crypto regulation

The Financial Services and Markets Bill aims to acknowledge crypto as a regulated undertaking and stablecoins as a viable form of payment within the framework of current legislation

By Shashank Bhardwaj

Published: Jun 20, 2023 06:36:16 PM IST

Updated: Jun 21, 2023 11:41:18 AM IST

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Lawmakers in the upper chamber of the United Kingdom's Parliament are making progress with legislation that could facilitate crypto adoption within the country. The Financial Services and Markets Bill is a legislative initiative that is aimed at strengthening the nation's financial services industry.

On June 19, during a session of the House of Lords, quite a few members advocated for the passage of the bill, which would make it possible to strengthen the nation's financial services industry. The bill successfully underwent a third reading in the House of Lords, representing one of the final stages before potential amendments are considered, and the bill is signed into law.

Lawmakers indicated that the activities that took place on June 19 were part of a strategy to improve the bill and increase its efficiency. The measure will now be sent back to the House of Commons, the lower body of the United Kingdom's Parliament. There, MPs will have the opportunity to review any recommended amendments that were put up by the upper chamber.

Baroness Joanna Penn expressed, "This Bill delivers the outcomes of the future regulatory framework review, providing the regulators significant new rulemaking responsibilities while balancing that additional responsibility with clear accountability, appropriate democratic input, and transparent oversight."

Initially introduced to the UK Parliament in July 2022, the Financial Services and Markets Bill aimed to safeguard the country's standing in the financial landscape following Brexit. The original version of the bill encompassed provisions concerning the regulation of digital assets, while the recent amendments from the House of Lords seemingly did not introduce any changes specifically relevant to the crypto industry.

With this bill, the UK introduces a change in the status of legislation for crypto markets in the country. As countries around the world increasingly come up with their own sets of regulations to monitor and manage the growing asset class that crypto is, we can expect cryptocurrencies to be adopted in the mainstream more widely.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash