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

Lawmakers in the upper house of the United Kingdom's Parliament are progressing with legislation aimed at facilitating the acceptance of cryptocurrencies in the country.

During a meeting of the House of Lords on June 19, many members expressed support for the Financial Services and Markets Bill, which seeks to strengthen the nation's financial services industry. The bill has now undergone its third reading in the House of Lords, marking one of the final stages before potential amendments and final enactment.

According to lawmakers, the proceedings on June 19 were intended to refine the bill and ensure its effectiveness. The bill will be sent back to the House of Commons, the lower house of the U.K. Parliament, where members can review and consider any proposed changes put forth by the House of Lords.

Baroness Joanna Penn stated, "This bill implements the outcomes of the future regulatory framework review, granting regulators significant new rulemaking responsibilities, while ensuring clear accountability, democratic input, and transparent oversight."

Initially introduced in July 2022, the Financial Services and Markets Bill aimed to safeguard the U.K.'s position in the global financial landscape following Brexit. The original version of the bill included provisions for digital asset regulation, whereas the latest amendments from the House of Lords did not seem to introduce any changes specifically relevant to the crypto industry.

Global cryptocurrency regulations have been influencing business decisions for firms worldwide. Recent crackdowns by U.S. authorities on Coinbase and Binance have resulted in legal complications for these exchanges. Additionally, some companies, such as Bybit, have announced their departure from Canada due to regulatory developments.