The Crypto and Digital Assets All Party Parliamentary Group (APPG), a UK forum for regulators and stakeholders, has announced details of an investigation into the UK Crypto and Digital Assets sector.
The investigation will focus on a variety of areas, including the UK’s current approach to crypto and digital asset regulation and the government’s plans to make the UK the global home of crypto investment; the current role and 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 consultation, the APPG is inviting views from across the sector, including crypto operators, regulators, industry experts, and government on the need to regulate the sector. Written submissions from interested parties may be submitted by September 5, 2022.
The group will also hold several evidence sessions in the coming months where they will hear from key stakeholders. The group will produce a report with key recommendations and share its findings with the Government for its consideration, as well as with the Treasury Select Committee in Parliament, which has also announced an upcoming investigation into the sector.
The purpose of the forum
Lisa Cameron MP, President of Crypto and Digital Assets APPG said there has recently been an increased interest in regulating cryptocurrencies from consumers and regulators as the number of people who now own some form of cryptocurrency or digital asset has grown in recent years. The move comes as global policymakers are also reviewing their approach to cryptocurrency and how it should be regulated.
As part of its investigation, the APPG will look into the state of the UK crypto sector and recent concerns raised around financial crime and advertising. It will consider the growth of cryptocurrencies in recent years and the need for regulators and government to keep pace with rapid advances in innovation and technology, as well as consider whether enough is being done in terms of consumer protection. The group will also look at international examples of other jurisdictions that have already taken steps to regulate the cryptocurrency sector.
The APPG will invite input from interested parties in the following areas of concern:
- 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 crypto and digital asset regulation:
The current state of UK regulation of crypto assets and digital assets;
Is the UK’s current approach aligned with the government’s stated ambition for the UK to be a global hub for cryptocurrency investment?
What is required to fulfill this ambition?
- The current role and approach of UK regulators including the Bank of England, the FCA and the ASA in relation to digital and crypto assets:
Views on the current approach of 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:
Opinions about the potential risks that crypto assets and digital assets represent for consumers;
Opinions about whether the current protections in place are sufficient and any further action that may be necessary in this regard;
The level of economic crime in relation to crypto and digital assets and the effectiveness of current controls in combating any potential risks.
They also encourage submissions on any other relevant topics not mentioned above.