UK Government Set to Pass FSMB Crypto and Stablecoins Regulations into Law

Initially, the bill only covered stablecoins. However, it has been amended to include all cryptocurrencies and organized activity.

the invoice (FSMB) which proposes to regulate stablecoin and cryptocurrency regulations in the UK has been approved by the second chamber of Parliament, the House of Lords.

The UK government is moving ahead with the Financial Services and Markets Bill (FSMB), which could support cryptocurrency adoption in the country. The bill proposes stable regulation of digital currencies and cryptocurrencies. At a meeting of the House of Lords of the British Parliament, several members called for the passage of legislation aimed at strengthening the national financial services industry. After a third reading in the House of Lords and approval of the FSMB by the House of Commons, the bill could now enter the final stages: consideration of amendments and royal assent.

It is worth noting that the consideration of the amendments is the final reading of the bill by both chambers. This process involves the House of Commons making any amendments to the bill as it sees fit while the House of Lords approves or rejects changes, as appropriate. Eventually, both houses will come to an agreement after several back and forth. On the other hand, when the UK monarch officially agrees to make the FSMB law, that is the royal assent.

UK Financial Services and Markets Bill (FSMB)

Initially, the bill was about regulating stablecoins. However, it has been amended to include all cryptocurrencies and organized activity. Oversight of crypto promotion was also added as the bill passed through Parliament.

The FSMB was first introduced to the British Parliament in July 2022 to ensure that Great Britain retains its place in the financial world. According to lawmakers, the latest measures were part of a plan to “tidy up” the bill to ensure its “effectiveness”. House of Lords member Baroness Penn stated:

“This bill advances the findings of a future review of the regulatory framework, giving regulators important new responsibilities in setting rules, while balancing that additional responsibility with clear accountability, appropriate democratic input, and transparent oversight.”

In April, the Treasury’s Economic Secretary, Andrew Griffiths, hinted at an upcoming regulation on cryptocurrencies. Speaking to CNBC, the lawmaker said Britain could enact specific laws regulating the digital currency industry within a year.

Great Britain has, over time, revealed its intention to become the home of crypto companies. The British Prime Minister, Rishi Sunak, has indicated that his ambition is to make the country a “global hub for crypto-asset technology.”

According to Griffiths, the UK will combine existing and new regulations.

Wherever possible, we want to see the same asset, the same transaction structured in the same way. But there are some additional opportunities in the crypto-asset or distributed ledger space and we want to take advantage of that.” He said he.

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Ibukun is a crypto/financial writer interested in passing on relevant information, using uncomplicated words to reach all types of audiences. Apart from writing, she loves watching movies, cooking, and exploring restaurants in the city of Lagos where she is staying.

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