The UK government is making progress in its efforts to regulate the cryptocurrency market through the Financial Services and Markets Bill.
Supporting the Adoption of Crypto in the UK
Lawmakers in the upper house of the UK Parliament are actively pushing for legislation that aims to facilitate the widespread adoption of cryptocurrencies in the country. During a meeting held on June 19 in the House of Lords, numerous members expressed their support for the Financial Services and Markets Bill.
This legislation is designed to bolster the country’s financial services industry. Further, it has reached the advanced stage of a third reading in the House of Lords.
As part of the legislative process, lawmakers have deemed it necessary to “tidy up” the Financial Services and Markets Bill. This is to ensure its effectiveness. The bill will now be sent back to the House of Commons. Here, members can review any proposed changes made by the upper house.
Achieving Regulatory Framework Objectives
Baroness Joanna Penn stated,
“This bill delivers the outcomes of the future regulatory framework review, giving the regulators significant new rulemaking responsibilities, whilst balancing that additional responsibility with clear accountability, appropriate democratic input, and transparent oversight.”
The bill, was initially introduced to the UK Parliament in July 2022. It aims to secure the country’s position in the financial world following Brexit. Further, the original version of the bill included provisions for digital asset regulation. However, the recent amendments from the House of Lords did not appear to affect the crypto industry.
Global Impact on Business Decisions
The regulation of cryptocurrencies on a global scale is influencing the decisions made by companies regarding their business operations. Authorities in the United States have taken actions against major exchanges like Coinbase and Binance, resulting in legal entanglements for these platforms.
Similarly, regulatory developments have prompted companies such as Bybit to announce their departure from Canada. These examples demonstrate how regulatory factors are shaping the landscape of the cryptocurrency industry.
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