The United Kingdom’s House of Lords has achieved a significant milestone by passing the Financial Services and Markets Bill, signaling the country’s progress in regulating crypto-assets and their providers.
The legislation, introduced on July 20, 2022, has the potential to significantly impact the cryptocurrency markets. With the endorsement from the House of Lords, the bill moves closer to becoming law.
Originally designed to harness post-Brexit opportunities and empower financial regulators, the bill initially aimed to regulate stablecoins under national payment rules.
However, as it progressed through Parliament, amendments were introduced to treat all cryptocurrencies as regulated activities.
The bill also incorporates measures to oversee crypto promotions, demonstrating a comprehensive approach to address the evolving crypto landscape.
The Financial Services and Markets Bill aligns with the UK government’s “Future Regulatory Framework” review, representing a comprehensive agenda for significant transformations within the financial services sector.
It includes the repeal and replacement of laws and regulatory requirements originating from EU measures after Brexit, marking a crucial step in shaping the UK’s independent regulatory framework.
The regulation of crypto-assets and their providers is of particular interest within the cryptocurrency sector. This groundbreaking development in UK law demonstrates a proactive approach to introducing regulatory supervision in an industry known for its laissez-faire attitude.
By bringing greater transparency and stability to the often volatile cryptocurrency markets, the bill aims to address concerns and create a more secure environment.
In addition to crypto regulation, the bill also focuses on other areas. It aims to regulate ‘Buy Now Pay Later’ products and their providers, prioritizing consumer protection.
The bill also guarantees continued access to cash, recognizing its importance for certain demographics still reliant on physical currency.
Furthermore, the legislation introduces the potential for mandatory reimbursement for victims of Authorised Push Payment (APP) scams.
By imposing tighter controls on those approving financial promotions for others, the bill aims to enhance accountability and combat financial scams.
