Introduction:
The U.K. Parliament has taken a significant step towards recognizing cryptocurrencies as regulated activities within the country. The approval of the Financial Services and Markets Bill (FSMB) by the House of Lords signifies its progression towards becoming law. This comprehensive bill, tailored to leverage Brexit opportunities and enhance regulatory authority over the U.K.'s financial system, has seen several amendments, including the inclusion of crypto regulation and supervision of crypto promotions.
.png "uk-parliament-advances-bill-to-regulat")
Body:
The FSMB, a substantial legislation spanning over 340 pages, was introduced in July with the aim of empowering regulators and granting them the necessary tools to establish crypto-related rules. Originally focused on regulating stablecoins, the bill's scope expanded as it made its way through Parliament, culminating in the incorporation of measures to treat all cryptocurrencies as regulated activities.
The United Kingdom seeks to catch up with the European Union, which recently finalized its comprehensive Markets in Crypto Assets regulation primarily targeting stablecoins. By enacting the FSMB, the U.K. aims to equip regulators with the authority required to develop specific rules for the crypto sector, a process that could be completed within a year according to Andrew Griffith, the Economic Secretary to the Treasury.
The approval of the FSMB by the House of Lords sets the stage for the bill to be returned to the lower house of Parliament for finalization. Subsequently, both houses will collaborate to reach a consensus on the final version. Once agreed upon, the bill will be submitted to the King for approval, eventually becoming law.
.jpeg "uk-parliament-advances-bill-to-regulate")
Conclusion:
The advancement of the Financial Services and Markets Bill in the U.K. Parliament marks a significant milestone in the country's regulatory approach to cryptocurrencies. By recognizing crypto as a regulated activity, the bill aims to instill confidence in the market and empower regulators to establish comprehensive rules. As the bill progresses towards finalization, the U.K. is poised to create a regulatory framework that keeps pace with global developments, facilitating the growth of the crypto sector within its borders.
