UK Moves Closer to Crypto Laws with Parliament’s Upper House Approval

The United Kingdom is getting closer to treating cryptocurrency as a regulated activity, with the promotion of digital assets being closely monitored. On Monday, lawmakers from Parliament’s upper chamber and the House of Lords ratified the Financial Services and Markets Bill (FSMB).

House of Lords Approves Crypto Laws

The bill originally proposes to regulate stablecoins in the payments industry. However, provisions developed for crypto as a regulated activity and overseeing crypto ads were added in subsequent amendments.

The FSMB outlines the UK’s economic strategy post-Brexit. The bill originally proposes to regulate stablecoins in the payments industry. However, provisions to deal with crypto as a regulated activity and oversee crypto ads were added in subsequent amendments.

As part of efforts to regulate the cryptocurrency industry in the UK, His Majesty’s Treasury recently consulted with the public on proposed regulations as part of steps to prepare draft provisions on regulating the crypto industry. The rules propose measures to offer UK consumers better protection while allowing the crypto industry to grow within a regulated ecosystem.

In April, Andrew Griffith, the Economic Secretary to the UK Treasury, told CNBC that crypto-specific regulation could come into force in the next year. He noted that the country is seeking to position itself as a “global hub for crypto asset technology.”

Eyes on the Crypto Industry

Recently, a group of lawmakers put forward 53 recommendations for crypto regulation. The All-Party Parliamentary Group (APPG) for Crypto and Digital Assets Group also sought the appointment of a dedicated official to oversee the regulatory process.

Finance Magnates reported that pro-crypto lawmakers divided the recommendations into several segments, including the country's approach toward crypto regulations, the role of the UK regulations, the central bank digital currencies, and risk in consumer protection and economic crimes.

In a related development, the UK Financial Conduct Authority is making plans to enforce new rules around cryptocurrency marketing and advertising from October 8. Previously, the Treasury announced it was introducing a time-limited exemption that will enable crypto firms that are authorized under the FCA’s anti-money laundering regime to issue their promotional materials before the new regulatory regime takes off.

TipRanks wins fintech award; ex-Scope Markets' exec at Titan FX; read today's news nuggets.