UK government moves forward on financial markets bill for potential regulation of crypto

Following a third reading in the House of Lords, the Financial Services and Markets Bill will return to the lower house of the U.K. Parliament for members to consider any changes.

Lawmakers in the upper house of the Parliament of the United Kingdom are moving forward with legislation that could help support the adoption of crypto in the country.

In a meeting of the U.K. Parliament’s House of Lords on June 19, many members advocated for the passage of the Financial Services and Markets Bill — legislation aimed at strengthening the country’s financial services industry. The bill went through a third reading in the House of Lords, one of the final stages in passage before considering any additional amendments and being signed into law.

According to lawmakers, the June 19 proceedings were part of a plan to “tidy up” the bill in an effort “to ensure it is effectual.” It will go back to the lower house of the U.K. Parliament, the House of Commons, where members can consider any changes proposed by the upper house.

“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,” said Baroness Joanna Penn.

#HouseOfLords conducts ‘tidy up’ of the #FinancialServicesBill from 3.15pm before it is returned to @HouseOfCommons to consider Lords changes.

Find out more https://t.co/kZYuE22bId

 Watch online https://t.co/MXe7B0XhMX pic.twitter.com/hPec0CXTm1

— House of Lords (@UKHouseofLords) June 19, 2023

First introduced to the U.K. Parliament in July 2022, the Financial Services and Markets Bill was aimed at ensuring the country maintained its place in the financial world following Brexit. The original version of the bill included granting authority on digital asset regulation, while the most recent amendments from the House of Lords seemingly did not include any changes relevant to the crypto industry.

Regulation of cryptocurrencies globally seems to be impacting where firms choose to do business. United States authorities have cracked down on both Coinbase and Binance, leading to the two exchanges becoming entangled in legal filings amid their ongoing business. Some companies, including Bybit, have announced their departure from Canada as well, specifically citing regulatory developments.

Magazine: US enforcement agencies are turning up the heat on crypto-related crime