United Kingdom Lawmakers Continue to Work on Financial Service and Markets Bill

The Parliament of the United Kingdom is advancing legislation that could foster the incorporation of cryptocurrencies into the country's financial system.

On June 19th, the House of Lords, the upper house of the UK Parliament, held a meeting where numerous members called for the passage of the Financial Services and Markets Bill, the legislation designed to strengthen the country's financial services sector.

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After undergoing its third reading in the House of Lords, it's now at one of the final stages before further amendments are considered and it is signed into law.

Lawmakers stated that the June 19th session was part of a strategy to "tidy up" the bill 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 review any amendments proposed by the House of Lords.

Baroness Joanna Penn spoke on the matter, saying:

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.

Introduced in July 2022, the Financial Services and Markets Bill aimed to ensure that the UK maintained its position in the financial world after Brexit.

Its initial draft included a clause granting authority over digital asset regulation. However, the most recent amendments from the House of Lords did not seem to contain changes relevant to the cryptocurrency industry.

Globally, the regulation of cryptocurrencies appears to influence the location of business operations. Major crypto exchange  Coinbase has faced legal action from US authorities, and companies like Bybit have even withdrawn from markets such as Canada due to regulatory changes.

On the other hand, following the legislation of the EU's MiCA, several crypto exchanges are eyeing the possibility to expand to the European Union.

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.