On June 19th, the House of Lords, the upper house of the UK Parliament, held a meeting where the Financial Services and Markets Bill was discussed, the legislation designed to regulate the cryptocurrency sector. After undergoing its third reading in the House of Lords, the Bill successfully passed. Lawmakers stated that further revisions are necessary to ensure its effectiveness. The next stage involves sending it back to the House of Commons, the lower house of the UK Parliament, for members to discuss and pass. Baroness Joanna Penn spoke on the matter, saying:
Introduced in July 2022, the Financial Services and Markets Bill aimed to provide clarity to the cryptocurrency sector in the UK. Its initial draft included a clause that would classify digital assets as either e-money or a regulated financial instrument. However, the most recent amendments from the House of Lords would amend this clause to classify digital assets as unregulated investments. Globally, the regulation of cryptocurrencies appears to be on the rise. Major crypto exchange Coinbase has recently made moves to become a financial securities broker in multiple countries, and companies like Paxful are also seeking licenses due to regulatory changes.
On the other hand, following the legislation of the EU’s MiCA, a regulatory framework that classifies digital assets as financial instruments, other European nations may follow suit. The progression of the Financial Services and Markets Bill in the UK Parliament signals a potential move towards the regulation of the cryptocurrency sector in the country.
