U.K. Parliament Takes Steps to Regulate Crypto with Approval of FSMB

In a historic milestone, British lawmakers have approved a new bill that could open the door to the country’s acceptance of cryptocurrencies as a regulated industry. The House of Lords gave its blessing to the Financial Services and Markets Bill (FSMB), advancing it into the last steps before becoming a law.

Expanding Regulatory Framework for Cryptocurrencies

The extensive FSMB, which is over 340 pages long, was first unveiled in July in an effort to take advantage of the opportunity given by Brexit and give regulators more control over the British financial sector. The original draft of the bill concentrated on regulating stablecoins under the nation’s payment regulations; however, as the bill advanced through Parliament, additional amendments were made, expanding its scope to cover the regulation of all cryptocurrencies as well as measures to monitor crypto promotions.

Through the FSMB, the U.K. government seeks to give regulators more power so they may create regulations for the cryptocurrency sector. The Treasury, the executive branch’s financial division, has been holding discussions to develop particular rules for the industry. Andrew Griffith, the Economic Secretary to the Treasury, revealed in an April interview with CNBC that new crypto-specific regulations might be put in place within a year. The European Union, which recently completed its Markets in Crypto Assets regulation, mostly focusing on stablecoins, is attempting to catch up with the United Kingdom.

Final Stages and Potential Impact

The FSMB will visit the lower house of Parliament again to seek agreement on a final version as the next step in the procedure. The document will be submitted to the King for approval and passing into law once both houses have agreed on it. It is important to keep in mind that until a unanimous decision is made, the measure may be the subject of back-and-forth discussions between the chambers of Parliament.

The U.K. Parliament’s action represents a proactive effort to regulate the cryptocurrency sector and reflects the growing appreciation of the significance of cryptocurrencies within the financial environment. Market participants and stakeholders will be anxiously awaiting the completion of precise regulations that will oversee the U.K.’s cryptocurrency sector as the FSMB moves closer to the next year.