UK financial markets bill pushes forward for potential crypto regulation

By: Dickson Arinze

June 20, 2023 10:20 AM

After a third review in the House of Lords, the Financial Services and Markets Bill will be sent back to the lower house of the U.K. Parliament so that amendments can be considered.

Lawmakers in the United Kingdom's upper chamber are working on laws that might aid in the adoption of cryptocurrency in the country.

On June 19, various members of the United Kingdom Parliament's House of Lords lobbied→ for the approval of the Financial Services and Markets Bill, legislation aimed at improving the country's financial services industry. The measure had a third reading in the House of Lords, one of the penultimate stages of passage before being considered for further revisions and signed into law.

The June 19 procedures, according to MPs, were part of a plan to "tidy up" the bill in order "to ensure its effectiveness." It will be sent back to the Chamber of Commons, the lower chamber of the United Kingdom Parliament, where members can consider any modifications offered by the upper house.

"This measure implements every recommendation of the forthcoming regulatory structure assessment, giving regulators significant fresh rulemaking responsibilities while maintaining that extra responsibility with full transparency, proper democratic input, and forthright oversight," said Baroness Joanna Penn.

The Financial Services and Markets Bill was first tabled in the United Kingdom Parliament in July 2022, with the goal of ensuring the country's role in the financial world post-Brexit. The initial version of the bill had authorization→ for digital asset regulation, but the most recent modifications from the House of Lords appear to have made no changes relevant to the crypto business.

The global regulation of cryptocurrencies appears to be influencing where corporations choose to conduct business. Authorities in the United States have cracked down on both Coinbase and Binance, resulting in the two exchanges becoming embroiled in legal proceedings in the midst of their continuous operations. Some companies, notably Bybit, have also declared their withdrawal from Canada, citing regulatory developments.