The British House of Lords Financial Services and Markets Bill This marks a major step in the country’s efforts to regulate crypto assets and their providers.
This law, introduced on July 20, 2022, could have a significant impact on the cryptocurrency market. With the approval of the House of Lords, the bill is one step closer to becoming law.
The FSMB, introduced last year to capitalize on the post-Brexit opportunity and empower financial regulators, initially included provisions to regulate stablecoins under national payment rules. However, as the bill passed through Congress, it incorporated amendments to treat all cryptocurrencies as regulated activities, as well as measures to oversee the promotion of cryptocurrencies.
The bill is a follow-up to the government’s review of the “Future Regulatory Framework” and provides a comprehensive package for significant changes across the financial services sector, including the repeal and replacement of all legal and regulatory requirements resulting from the EU action. considered a hot topic. of leaving the EU.
Of particular interest to the cryptocurrency sector are the legal provisions for regulating crypto-assets and their providers. This radical development in English law represents a serious attempt to introduce regulatory oversight into an industry known for its laissez-faire attitude. The move is expected to bring more transparency and stability to the volatile cryptocurrency market.
The bill would also regulate “buy now, pay later” products and their providers, with the aim of enhancing consumer protection. At the same time, maintaining access to cash is guaranteed. This is essential for demographics that still rely on physical currency.
It also introduces the prospect of mandatory reimbursement for victims of Authorized Push Payment (APP) fraud. APP fraud is a rampant problem in the UK, and the bill aims to tighten controls over those who approve financial promotions to others, thereby increasing accountability to the financial ecosystem. .
As the bill moves through the parliamentary process, there are some ongoing discussions on its provisions. While some aspects are expected to provoke intense debate, other provisions may soon be integrated into the regulatory regime.
House of Lords Passes Bill Recognizing Cryptocurrencies as “Regulated Activities” in the UK This article first appeared on CryptoSlate.