The UK has come up with an All Party Parliamentary Group (APPG) to address the challenges and opportunities in the crypto and digital assets industry. The APPG will explore the need for future regulation of the sector. With growing interest in digital assets, the UK government sees potential in the crypto markets.
Lisa Cameron, the SNP MP, will chair the Crypto and Digital Assets Group. It comprises UK MPs and members of the House of Lords. The Group will make sure that rules for the digital asset industry support innovation. It has promised to address economic crime and steer consumers away from crypto scams and unregulated firms.
Cameron acknowledged that it is a crucial time for the sector. Global policymakers are reviewing and working on new approach to address and regulate the crypto sector. Experts have pointed out the the UK government has been slow to come up with proper rules and regulation for cryptocurrency businesses. As such, Britain risks losing such businesses to other countries.
The former UK Chancellor Philip Hammond had signed up as adviser to Copper, the crypto custody group, in autumn of 2021. He said the UK was not as quick as Singapore, Germany and Switzerland. Hammond believes that since UK has left the EU, it needs to embrace financial innovation to compete.
It should be noted that the parliamentary group comes after CryptoUK’s successful efforts to make lawmakers aware about the benefits of the digital assets to the economy. Ian Taylor, the executive director of CryptoUK, said their primary focus will be education. He pointed out that there is no real advocacy and education around crypto assets.
The APPG’s agenda is to examine the Financial Conduct Authority’s (FCA) money laundering registration regime for crypto companies. It will also look into the outcome of the two pending policy consultations on crypto advertising and stablecoins. The parliamentary group will see how to best protect the interests of consumers as it is topmost priority for the government.