UK Parliament Forms Crypto and Digital Assets Group to Regulate Space

UK’s Crypto and Digital Assets Group pledges to help tackle economic crime and consumer protection in the digital assets space.

By Shomik Sen Bhattacharjee | Updated: 11 January 2022 15:05 IST

UK Parliament Forms Crypto and Digital Assets Group to Regulate Space

Photo Credit: Unsplash/ Executium

About 3 million adults in the UK own some form of cryptocurrency

Highlights

The group includes members from the Parliament and the House of Lords
The panel is backed by a digital asset trade association named CryptoUK
The new group will look into crypto legislation

UK has upped its influence in the country's cryptocurrency sector with the launch of an independent group of lawmakers intent on regulating the maturing digital currencies market. Dubbed the Crypto and Digital Assets Group, the group includes members from Parliament as well as the House of Lords; its mission is to craft new rules for the digital asset industry that support innovation. Eminent members in the group include former UK Digital Economy Minister Ed Vaizey and Tory MP Harriett Baldwin, a former JPMorgan executive.

“We are at a crucial time for the sector as global policymakers are also now reviewing their approach to crypto and how it should be regulated,” said Scottish National Party (SNP) MP Lisa Cameron, the group's chairwoman while speaking to the Financial Times.

We're proud to formally announce the launch of the Crypto and Digital Assets APPG.

CryptoUK has been working for several months to get the support of MP's and Lords, chaired by Lisa Cameron MP, to form this group. Read the full news story here: https://t.co/rJfXr4nAhJ pic.twitter.com/Aw4Be1iVgm
— CryptoUK (@CryptoUKAssoc) January 7, 2022

The Westminster All-Party Parliamentary Group (APPG) is backed by the digital asset trade association CryptoUK, which said the group will act as a forum for parliamentarians, policymakers, and the UK crypto sector to discuss policy and regulation of the industry.

The group will look to address key challenges for the sector, according to CryptoUK, such as creating a regulatory framework that supports innovation and growth but also considers issues such as consumer protection and economic crime.

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The group's agenda will also prioritise the examination of the Financial Conduct Authority (FCA's) money laundering registration regime for crypto companies, as well as the outcome of two pending policy consultations on crypto advertising and stablecoins.

The group will explore a range of topics including protecting consumers from fraud and scams, advertising, financial education and inclusion, the UK's role as a leader in financial services and innovation, environmental issues, and the future of digital payments.

CryptoUK tells FT that the group intends to investigate the state of the UK crypto sector and recent concerns raised around financial crime and advertising. It says it will also consider the growth of crypto over recent years and the need for regulators and government to keep pace with the advancements and the increased adoption of crypto by consumers.

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The trade association, which represents companies like eToro and Crypto(dot)com, said the group will also look at international examples from other jurisdictions that have already taken steps to regulate the crypto sector.

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