The All Party Parliamentary Group (APPG) sector is exploring the need for further regulation of the market and inviting feedback from interest stakeholders across the industry, including crypto operators, regulators, industry experts and government.
The cross-party group, chaired by Dr Lisa Cameron MP, comprises MPs and Lords including the former Digital Minister Lord Vaizey, member of the Treasury Select Committee Harriett Baldwin MP, and former Secretary of State Matt Hancock MP.
The terms of the inquiry are expansive, assessing the role of government and regulators, consumer protection issues and the use of central bank digital currencies.
The APPG inquiry comes at a time of increased scrutiny of the UK crypto and digital asset sector.
HM Treasury announced plans earlier this year to make the UK the global home of crypto investment and to boost the nation’s technology and fintech sector.
Research from HMRC in July 2022 also showed that 10% of UK adults said they hold or have held a crypto asset. That figure is up from 5.7% in January 2021, based on Financial Conduct Authority data.
“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,” says Cameron. “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 launch of the inquiry follows the establishment of two legal taskforces to examine the legislative changes required to support the issuance and transfer of digital securities on blockchain and digital ledger technology (DLT) systems and on the issuance and transfer of digital securities under English private law.
Both aim to push provisional law reform proposals to ensure recognition and protection of digital assets.
