The FSMB bill passing extends the banking rules of the FSMA 2000 to stablecoins and digital assets, meaning digital assets will be officially recognized in the U.K. as regulated financial activity.
The U.K. Financial Services and Markets Bill, which seeks to bring stablecoins and digital assets within the country's banking and payment rules, will now return to the lower house of parliament for MPs to consider any changes.
After its second reading of the Financial Services and Markets Bill, members of the British House of Lords have voiced concerns that it does not go far enough and that a whole new regulatory approach will be required.
The Financial Services and Markets Bill would further integrate definitions for digital assets and digital asset service providers into existing financial legislation.
