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

After undergoing a third reading in the House of Lords, the Financial Services and Markets Bill will be returned to the lower house of the U.K. Parliament for members to review any potential modifications. Lawmakers in the upper house are advancing legislation to facilitate the acceptance of cryptocurrencies within the country.

During a House of Lords meeting on June 19, numerous members expressed support for the passage of the Financial Services and Markets Bill, which aims to strengthen the financial services industry in the United Kingdom. The bill completed its third reading in the House of Lords, which is one of the final stages before it can be amended further and enacted into law.

Lawmakers stated that the proceedings on June 19 were intended to “clean up” the bill and ensure its effectiveness. It will now return to the House of Commons, the lower house of the U.K. Parliament, where members can deliberate on any amendments proposed by the House of Lords.

Baroness Joanna Penn remarked, “This bill implements the outcomes of the future regulatory framework review, providing regulators with significant new rulemaking responsibilities, while also maintaining clear accountability, democratic input, and transparent oversight.”

The Financial Services and Markets Bill was initially introduced to the U.K. Parliament in July 2022 with the objective of safeguarding the country’s position in the financial realm following Brexit. The original version of the bill included provisions related to the regulation of digital assets, although the recent amendments from the House of Lords seemingly did not encompass any changes relevant to the crypto industry.

The global regulation of cryptocurrencies appears to be influencing companies’ decisions regarding their business operations. U.S. authorities have taken action against Coinbase and Binance, resulting in legal disputes as part of their ongoing operations. Additionally, some firms, including Bybit, have announced their departure from Canada, citing regulatory developments as the reason for their exit.

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