20-6-2023 (LONDON) The U.K. parliament has voted in favour of the Financial Services and Markets Bill (FSMB), which could see cryptocurrency recognized as a regulated activity in the country. The approval of the bill by the House of Lords on Monday means it is now set to enter the final stages before becoming law.
Introduced in July, the wide-ranging 340-page bill was designed to give regulators more power over the country’s financial system and take advantage of post-Brexit freedoms. While the original bill proposed regulating stablecoins under the country’s payments rules, amendments to treat all crypto as a regulated activity and supervise crypto promotions were later added as the bill progressed through Parliament.
The U.K. hopes that the FSMB will give regulators the powers they need to set crypto rules that the Treasury has been consulting on. New rules for the sector could be introduced within a year, according to Economic Secretary to the Treasury Andrew Griffith, who spoke to CNBC in April. The U.K. is trying to catch up with the European Union, which recently finalized its Markets in Crypto Assets regulation that focuses mainly on stablecoins.
The next step for the FSMB is to be returned to the lower house of Parliament to agree on a final version. Once both houses agree on the document, it will be sent to the King for approval and passage into law. The bill can be sent back and forth between the chambers of Parliament until a consensus is reached.
