• U.K. Parliament’s Upper House approves Financial Services and Markets Bill (FSMB), which will regulate stablecoins and crypto assets.
• The bill also provides a framework to supervise crypto promotions within the country.
• The FSMB is expected to be returned to the lower house of the Parliament for final approval.
Upper House Approves Crypto Bill
The upper house of the United Kingdom Parliament approved the Financial Services and Markets Bill (FSMB) on 19 June, which aims to regulate stablecoins and crypto assets, besides supervising crypto promotions. The bill was tabled in July 2022 with an aim to capitalize on the post-Brexit liberties open for the country and give regulators greater control over the financial system. Baroness Joanna Penn, Parliamentary Secretary for the Treasury said that this bill delivers outcomes of future regulatory framework review by giving regulators significant rulemaking responsibilities with appropriate accountability, democratic input, and transparent oversight.
Return To Lower House Of Parliament
19 June procedures were part of a plan to “tidy up” the bill in order to ensure its effectiveness before it is returned back to House of Commons – lower chamber of UK Parliament–for final approval from both houses. Once both houses have agreed on the legislation, King Charles will officiate for final approval and enactment into law. Both chambers can send back and forth until they are satisfied with all contents included in final version of FSMB regulation.
Competing With EU On Crypto Regulation
U.K tries to catch up with European Union as it recently finalized its Markets in Crypto Assets (MiCA) regulation while U.K wants FSMB provide regulators authority they need to implement crypto rules within their jurisdiction successfully .
Aim Of The Bill
The original bill proposed regulating stablecoins within payment standards but later amendments included classifying all cryptocurrency as regulated assets along with instituting measures for monitoring crypto marketing campaigns .
This new legislation would be beneficial for investors as this will bring clarity regarding taxation policies , registration requirements , consumer protections , anti-money laundering regulations etc so that digital asset industry can grow in a safe & secure environment .