The UK Parliament has passed the Financial Services and Markets Bill, a piece of legislation that will regulate crypto-assets and their providers.
The bill, which was first introduced in July 2022, was passed by the House of Lords on June 16, 2023. It now moves to the Queen for royal assent, which is expected to take place shortly.
The Financial Services and Markets Bill is a significant development for the cryptocurrency industry. It is the first time that the UK government has taken steps to regulate crypto-assets.
The bill will require firms that offer crypto-asset services to be authorized by the Financial Conduct Authority (FCA). It will also require firms to comply with certain rules, such as those relating to anti-money laundering and consumer protection.
The passage of the Financial Services and Markets Bill is a positive development for the cryptocurrency industry. It provides much-needed clarity and certainty for businesses operating in the space.
It also sends a signal to the rest of the world that the UK is open to innovation and is committed to creating a safe and orderly market for crypto-assets.
Key Provisions of the Bill
The Financial Services and Markets Bill includes a number of key provisions that will impact the cryptocurrency industry. These include:
- Requiring firms that offer crypto-asset services to be authorized by the FCA: This will give consumers greater confidence in the crypto-asset industry and will help to protect them from fraud.
- Requiring firms to comply with certain rules, such as those relating to anti-money laundering and consumer protection: This will help to prevent the use of crypto-assets for illegal activities and will protect consumers from financial harm.
- Creating a new offense of market abuse for crypto-assets: This will help to prevent the manipulation of crypto-asset prices and will protect investors from unfair trading practices.
The Future of Crypto Regulation in the UK
The passage of the Financial Services and Markets Bill is a significant step forward for crypto regulation in the UK.
However, it is important to note that the bill is still in its early stages. The FCA will need to develop detailed rules and guidance to implement the bill. It is also possible that the bill will be amended further before it becomes law.
