An inquiry into the UK crypto industry has been announced by the All Party Parliamentary Group (APPG) for the UK Crypto and Digital Assets sector. The inquiry aims to focus on the UK’s approach to regulating crypto, the potential of Central Bank Digital Currencies (CBDCs), the risks of economic crime and consumer protections, and the Government’s plans to make the UK a global crypto hub.
The APPG said it will review if there is need for further regulation of the crypto industry while issuing a public call for feedback from interested parties. The APPG is inviting written submissions from interested parties until the 5th of September 2022.
Dr. Lisa Cameron MP, and Chair of the APPG, says the “UK must not take its foot off the gas when it comes to crypto.”
The cross-party group consists of MPs and Lords from across the main political parties and represents a broad range of interests and expertise in financial services, and technology. The group acts as a forum for parliamentarians, policymakers and the UK crypto sector to discuss policy and regulation of the industry.
The inquiry is expected to review a range of topics including the UK’s current approach to regulation of crypto and digital assets and the Government’s plans to make the UK the global home of crypto investment. The APP will also discuss the role of UK regulators, including the Bank of England, the FCA and the ASA in relation to crypto and digital assets. Findings will be shared with the Government as well as Parliament.
Earlier this year, HM Treasury announced its intent to make the UK the global home of crypto investment, seeking to attract crypto firms to the UK and to boost the UK’s technology and Fintech sector.
Cameron commented on the announcement saying “we are at a crucial time for the sector as global policy makers are also now reviewing their approach to crypto and how it should be regulated.”
“As part of its inquiry the APPG will investigate the state of the UK crypto sector and recent concerns raised around financial crime and advertising. It will consider the growth of crypto over recent years and the need for regulators and Government to keep pace with the rapid advancements in innovation and technology, as well as considering whether enough is being done in terms of consumer protection. The group will also look at international examples from other jurisdictions that have already taken steps to regulate the crypto sector.”
Cameron said that Government and regulators must keep their commitments when it comes to crypto and digital assets.”
Ian Taylor, Executive Director of CryptoUK – an independent advocacy group, lauded the announcement:
“We welcome the announcement of the APPG inquiry and are pleased that policymakers are waking up to the huge potential for the UK in terms of economic growth, jobs and skills from a properly regulated crypto and digital asset sector. The Government has said it wants the UK to be the global home for crypto investment and the focus now must be on how the UK can deliver on this commitment.”
Taylor said the crypto industry recognizes the need for a well-regulated industry that supports a healthy and robust market:
“We want to see a proportionate approach to regulation that balances the need for consumer protection with the need to support innovation and growth.”
Written submissions should be sent to appg@cryptouk.io.
The APPG was launched in November 2021 and consists of the following individuals:
Chair – Lisa Cameron MP (SNP)
Vice Chair – Martin Docherty-Hughes MP (SNP)
Vice Chair – Harriett Baldwin MP (Conservative)
Vice Chair – Lord Taylor of Warwick (Non Affiliated)
Vice Chair – Alexander Stafford MP (Conservative)
Treasurer – Lord McNicol of West Kilbride (Labour)
Officers:
Philip Davies MP (Conservative)
Simon Fell MP (Conservative)
Lord Cromwell (Crossbench)
Lord Vaizey of Didcot (Conservative)
Bell Ribeiro-Addy MP (Labour)