All-party parliamentary group launches inquiry into UK crypto industry
The Crypto and Digital Assets All Party Parliamentary Group (APPG) has announced details of an inquiry into the UK Crypto and Digital Assets sector.
All Party Parliamentary Groups (APPGs) are informal cross-party groups that have no official status within Parliament. They are run by and for Members of the Commons and Lords, though many choose to involve individuals and organisations from outside Parliament in their administration and activities.
The inquiry will focus on a range of key areas 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 role and current approach of UK regulators including the Bank of England, the FCA and the ASA in relation to crypto and digital assets; the potential of Central Bank Digital Currencies; and potential risks in terms of Consumer Protection and Economic Crime.
As part of its inquiry the APPG is inviting views from across the sector including crypto operators, regulators, industry experts and Government on the need for regulation of the sector.
The APPG is inviting written submissions from interested parties until the 5th September 2022.
The group will also be holding a number of evidence sessions over the coming months which will hear from key stakeholders. The group will produce a report with key recommendations and will share its findings with Government for consideration as well as with the Treasury Select Committee in Parliament which has also announced an upcoming inquiry into the sector.
Announcing the inquiry Lisa Cameron MP, Chair of the Crypto and Digital Assets APPG, said:
“The UK Crypto sector has seen increased interest from consumers and regulators as the number of people who now own some form of cryptocurrency or digital asset has grown in recent years. 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.
It’s vital that the UK does not take its foot off the gas and that Government and regulators keep to their commitments when it comes to crypto and digital assets.”
The APPG invites views from interested parties on the following areas of interest:
- The UK as a global home of crypto investment:
- The potential opportunities and risks associated with crypto and digital assets in the UK.
- The UK’s current approach to regulation of crypto and digital assets:
- The current state of regulation in the UK of crypto and digital assets;
- Whether the UK’s current approach is aligned to the Government’s stated ambition for the UK to be a global hub for crypto investment?
- What is required to fulfil this ambition?
- The role and current approach of UK regulators including the Bank of England, the FCA and the ASA in relation to crypto and digital assets:
- Views on the current approach by UK regulators, specifically the Financial Conduct Authority, the Bank of England, and the Advertising Standards Authority.
- Central Bank Digital Currencies:
- Views on what any UK CBDC should look like;
- Views on the potential use case for a UK CBDC;
- Views on the opportunities and risks associated with a UK CBDC.
- Consumer Protection and Economic Crime:
- Views on the potential risks posed to consumers by crypto and digital assets;
- Views on whether current protections in place are sufficient and any further action that may be required in this regard;
- The level of economic crime in relation to crypto and digital assets and the effectiveness of current controls in place to combat any potential risks.
The APPG also encourages submissions on any other relevant issues not listed above.
Submissions should be in word format and be no longer than 6 pages. The APPG will accept relevant reports and research as part of any written submission as an appendix. Please reference any relevant elements of any reports or research as part of your written submission.
Written submissions should be sent to [email protected]
The deadline for written submissions is 5th September 2022.