Crypto bill approved by UK Parliament’s Upper House
- The Upper House will return the FSMB to the lower house of the Parliament for final approval.
- The U.K. is trying to catch up with the EU, which recently finalized its MiCA regulation.
The upper house of the United Kingdom Parliament approved the Financial Services and Markets Bill (FSMB) on 19 June. The bill aims to regulate stablecoins and crypto assets, besides supervising crypto promotions.
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— House of Lords (@UKHouseofLords) June 19, 2023
Upper House approves crypto bill
The bill was tabled in July 2022 to capitalize on the post-Brexit liberties open for the country and give regulators greater control over the financial system. The original bill proposed regulating stablecoins within the country’s payment standards. Later amendments included classifying all cryptocurrency as regulated and instituting measures to monitor crypto marketing.
The 19 June procedures, according to MPs, were part of a plan to “tidy up” the bill in order to ensure its effectiveness.
Baroness Joanna Penn, Parliamentary Secretary for the Treasury, said:
“This bill delivers the outcomes of the future regulatory framework review, giving the regulators significant new rulemaking responsibilities, whilst balancing that additional responsibility with clear accountability, appropriate democratic input, and transparent oversight.”
The Upper House will return the FSMB to the House of Commons – the lower chamber of the UK Parliament. Once both houses have agreed on the legislation, King Charles will officiate the final approval and enactment. Both houses can send the bill back and forth to each other until the final contents satisfy them both.
U.K. competes with EU
The U.K. is trying to catch up with the European Union, which recently finalized its Markets in Crypto Assets (MiCA) regulation.
The U.K. wants the FSMB to provide regulators with the authority that they need to implement crypto rules. Economic Secretary to the Treasury Andrew Griffith told CNBC in April that new crypto-specific rules might be implemented within a year. He added that the U.K. wanted to position itself as a “global hub for crypto-asset technology.”