UK Parliamentary Group to look into the quality of cryptocurrency regulation

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UK All-Party Parliamentary Group (APPG) intends to explore stakeholder views on digital asset supervision.

A group of British parliamentarians wantsclarify for yourself and your colleagues the need for further regulation of the crypto space. The investigation is primarily focused on government initiatives to transform the region into a global hub for digital assets.

The role of UK regulators will be examinedto the supervision of crypto assets, Central Bank digital currencies (CBDC) and the risks associated with such assets. The APPG study is expected to gather views from crypto exchange operators, regulators, industry experts and agencies such as the Bank of England, the Financial Conduct Authority (FCA) and the UK Advertising Standards Authority (ASA).

According to the head of the group, Lisa Cameron (LisaCameron), the need for investigation arose due to the growing popularity of cryptocurrencies in the country. As of July 2022, 10% of UK adults owned or traded cryptocurrencies.

“The UK cryptocurrency sector has becomehas witnessed increased interest from consumers and regulators as the number of people owning some form of cryptocurrency or digital assets has grown in recent years. We are at a critical time for the sector as governments around the world reconsider their approach to crypto and how it should be regulated,” Cameron explained.

General Director of the Association of LobbyistsCryptoUK (which includes seven crypto companies) Ian Taylor welcomed the investigation and said it would bring sanity to the crypto industry:

UK Cryptocurrency SectorRecognizes the importance of a well-regulated industry in the country and supports regulation that provides business confidence and promotes the development of a healthy and reliable market. We want to see a proportionate approach to regulation that balances the need to protect consumer rights with the need to support innovation and growth.”

The APPG intends to share the results of its investigation with the government. Interested parties have until September 5 to submit their views.

Last month, a member of the British Parliament's Law Commission saw cryptocurrencies as a new type of property.