UK Parliament Refines Crypto Regulation With Latest Inquiry Launched
The All-Party Parliamentary Group (APPG) for the UK Crypto and Digital Assets Sector is seeking industry input for its latest survey of the growing UK crypto asset industry.
The inquiry is expected to focus on a range of key areas, including the UK’s current approach to regulating crypto and digital assets, as well as the government’s plans to make the UK the global home of the investing in crypto.
The current approach of UK regulators, including the bank of englandthe Financial Conduct Authority (CIF) and the Advertising Standards Authority (ASA) regarding crypto and digital assets, the potential of central bank digital currencies (CBDCs) and the potential risks in terms of consumer protection and economic crime are all areas that should be discussed.
The cross-party group, chaired by Dr Lisa Cameronwho is MP for East Kilbride, Strathaven and Lesmahagow, is made up of MPs and Lords from the main political parties and represents a wide range of interests and expertise in financial services, digital and technology.
The group acts as a forum for parliamentarians, policy makers and the UK crypto industry to discuss industry policy and regulation.
Speaking when the investigation was announced, Cameron warns that the UK must not ease off when it comes to crypto. “We are at a critical time for the industry, as global policymakers are also reviewing their approach to crypto and how it should be regulated.”
As part of its investigation, the APPG will investigate the state of the UK crypto industry and recent concerns raised regarding financial crime and advertising.
“It will take into account the growth of crypto over the past few years and the need for regulators and government to keep pace with rapid advances in innovation and technology, as well as determining whether enough is being done in terms of consumer protection,” Cameron continues.
“The group will also look at international examples from other jurisdictions that have already taken steps to regulate the crypto industry.”
As part of its investigation, the APPG invites views from across the industry and said it wants to hear from crypto operators, regulators, industry experts, and government on the need for regulate the sector.
The inquiry is expected to engage in a number of evidence sessions with key stakeholders over the coming months to produce a report of key recommendations to be shared with the Government and Treasury Select Committee in Parliament; who also announced an upcoming survey of the sector.
The APPG investigation comes at a time of heightened scrutiny of the UK crypto and digital asset sector.
In April of this year, Her Majesty’s Treasury announced plans to make the UK the global home for crypto investment, seeking to attract crypto businesses to the UK and boost the UK’s tech and fintech sector, creating jobs and growing enhancing skills and talents.
Research of HMRC in July 2022 also showed that 10% of UK adults currently hold or have held a crypto-asset, a figure that has increased from the 5.7% recorded in January 2021 by the FCA.
CryptoUKthe UK’s independent trade association which represents over 100 members across the crypto industry and also serves as the secretariat for the APPG, welcomed the launch of the survey.
“We welcome the announcement of the APPG survey and are delighted that policymakers are realizing the huge potential the UK has for economic growth, jobs and skills from a crypto and asset sector. correctly regulated”, comments Ian Taylorchief executive of CryptoUK.
“The government has said it wants the UK to be the global home for crypto investment and the focus now needs to be on how the UK can deliver on that commitment.
“The UK crypto sector recognizes the importance of a well-regulated industry in the UK and supports regulation that provides commercial certainty and encourages a healthy and robust market. We want to see a proportionate approach to regulation that balances the need to protect consumers with the need to support innovation and growth.
The APPG invites interested parties to submit their written comments until September 5, 2022.