The United Kingdom is getting closer to treating cryptocurrency as a regulated activity, with promotion of digital assets closely monitored. On Monday, lawmakers from the Parliament’s upper chamber, House of Lords, ratified the Financial Services and Markets Bill (FSMB).

House of Lords Approves Crypto Laws

FSMB outlines the UK’s economic strategy post-Brexit. The bill originally proposes to regulate stablecoins under the paymentsPaymentsOne of the bases of mediums of exchange in the modern world, ...Read this Term industry. However, provisions to deal with crypto as a regulated activity and to oversee crypto ads were added in subsequent amendments.

The approval means that the bill, which was sanctioned by the lower chamber House of Commons in October last year, is now set for the final stages. This stage includes a last reading by both chambers, with royal assent granted by King Charles III once both chambers agree on final provisions.

As part of efforts to regulate the cryptocurrency industry in the UK, His Majesty’s Treasury recently consulted with the public on proposed regulations as part of steps to prepare draft provisions on regulating the crypto industry. The rules propose measures to offer UK consumers better protection while allowing the crypto industry to grow within a regulated ecosystem.

In April, Andrew Griffith, Economic Secretary to the UK Treasury told CNBC that crypto-specific regulation could come into force in the next one year. He noted that the country is seeking to position itself as a “global hub for crypto asset technology.”

Eyes on the Crypto Industry

Meanwhile, a group of lawmakers recently put forward 53 recommendations for crypto regulation. The All-Party Parliamentary Group (APPG) for Crypto and Digital Assets Group also sought the appointment of a dedicated official to oversee the regulatory process.

Finance Magnates reported that pro-crypto lawmakers divided the recommendations into several segments, including the country's approach toward crypto regulations, the role of the UK regulations, the central bank digital currencies, and risk in consumer protection and economic crimes.

In a related development, the UK Financial Conduct Authority is also making plans to enforce news rules around cryptocurrency marketing and advertisings from October 8. The Treasury previously announced it was introducing a time-limited exemption that will enable crypto firms authorized under the FCA’s anti-money laundering regime to issue their promotional materials before the new regulatory regime takes off.