Initially, the bill covered only stablecoins. However, it was amended to include all cryptos and regulated activity.
The bill (FSMB) that proposes the regulation of stablecoin and crypto regulation in the UK has been approved by the second chamber of the Houses of Parliament, the House of Lords.
The UK government is moving forward on the Financial Services and Markets Bill (FSMB), which could support crypto adoption in the country. The bill proposes stablecoin and crypto regulation. In a meeting of the UK parliament’s House of Lords, many members advocated passing the legislation that targets strengthening the national financial services industry. Following the third reading in the House of Lords and approval of the FSMB by the House of Commons, the bill can now enter the final stages: Consideration of Amendments and Royal Assent.
Notably, Consideration of Amendments is a final reading of the bill by the two Houses. This process includes the House of Commons making any amendments to the bill as deemed fit while the House of Lords approves or disapproves the changes, as applicable. Eventually, both houses would come to an agreement after multiple back and forths. On the other hand, when the UK King formally agrees to make the FSMB a law, that is Royal Assent.
The UK Financial Services and Markets Bill (FSMB)
Initially, the bill was about regulating stablecoins. However, it was amended to include all cryptos and regulated activity. Crypto promotion supervision was also added as the bill passed through parliament.
The FSMB was first introduced to the UK Parliament in July 2022 to ensure Great Britain maintains its place in the financial world. According to lawmakers, the most recent proceedings were part of the plan to “tidy up” the bill to “ensure it is “effectual”. Member of the House of Lords Baroness Joanna Penn stated:
“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.”
In April, the Economic Secretary to the Treasury, Andrew Griffith, hinted at a coming regulation on crypto. Speaking to CNBC, the lawmaker said that Britain could introduce specific laws regulating the crypto industry within a year.
Great Britain has, over time, revealed its intention to become a home for crypto firms. The UK prime minister, Rishi Sunak, noted his ambition is to make the country a “global hub for cryptoasset technology”.
According to Griffith, the UK will combine the existing and new regulations.
“Wherever possible, we want to see the same asset, the same transaction regulated in the same way. But there are some additional opportunities in the crypto asset or distributed ledger space and we want to take advantage of that,” said he.
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