Lawmakers in the upper house of the United Kingdom’s Parliament are pushing forward with legislation that aims to support the adoption of cryptocurrencies in the country. During a meeting on June 19, members of the U.K. Parliament’s House of Lords expressed their support for the Financial Services and Markets Bill, which seeks to strengthen the nation’s financial services industry. The bill recently underwent its third reading in the House of Lords, marking one of the final stages before potential amendments and eventual enactment into law.
Lawmakers involved in the proceedings emphasized the need to refine the bill to ensure its effectiveness. The legislation will now return to the lower house, the House of Commons, where representatives can review any proposed changes put forth by the upper house. Baroness Joanna Penn, one of the proponents of the bill, stated that it would establish a future regulatory framework review, granting regulatory authorities enhanced rulemaking responsibilities while maintaining accountability, democratic input, and transparent oversight.
Crypto adoption in the UK
The Financial Services and Markets Bill was originally introduced to the U.K. Parliament in July 2022, primarily with the goal of safeguarding the country’s position in the financial world post-Brexit. Initially, the bill included provisions regarding digital asset regulation. However, the most recent amendments made by the House of Lords did not appear to introduce any changes directly relevant to the cryptocurrency industry.
The global landscape of cryptocurrency regulation has influenced firms’ decisions on where to conduct their business. Regulatory crackdowns on prominent exchanges such as Coinbase and Binance by U.S. authorities have resulted in legal disputes and ongoing challenges for these platforms. Similarly, some companies, including Bybit, have announced their departure from Canada, citing regulatory developments as the reason behind their decision.
The movement of the Financial Services and Markets Bill in the U.K. Parliament indicates a growing recognition among lawmakers of the importance of cryptocurrencies and the need for appropriate regulation to foster their adoption and protect investors.
While the recent amendments may not have specifically addressed crypto-related matters, the overall objective of the bill is to strengthen the financial services industry could indirectly benefit the crypto sector as well. As the bill progresses through the legislative process, stakeholders will be watching closely for any further developments that could have a direct impact on the adoption and regulation of cryptocurrencies in the United Kingdom.
