A UK Parliamentary Group Launches an Inquiry to Review the Country’s Current Crypto Regulation Approach
- The group (All Party Parliamentary Group, APPG for crypto) is also utilizing multiple evidence sessions to gather more data.
The UK’s All Party Parliamentary Group (APPG) recently announced the launch of a detailed inquiry into the country’s crypto regulatory approach. The inquiry aims to have feedback on the UK’s current approach to regulating the fast-evolving crypto industry. Additionally, the group intends to review the authorities’ plans to make the UK a global crypto hub for innovation and investment.
According to the group’s official statement, it plans to hold multiple evidence sessions in the next couple of months. Apart from getting feedback via these public meetings, the APPG also plans to seek the opinions of top crypto players such as virtual asset service providers and technical experts. The APPG plans to end this inquiry by September 5, 2022.
Then, it would prepare a detailed report of its findings and provide key recommendations for the authorities’ consideration. The APPG also stated that the UK’s treasury select committee would also have access to the report.
An Important Period in UK’s Crypto Sector
Commenting on the inquiry, the chairperson of the APPG, Lisa Cameron, said, “consumers and regulators have shown tremendous interest in the UK’s crypto sector, especially in recent years when the number of digital asset holders has increased significantly. Hence, we must review our approach to crypto regulation as other global policymakers do.”
Cameron further said the group would analyze the worries of many about false claims in crypto ads in the UK and using cryptos for financial crime purposes. Hence, it would entertain reviews on current controls towards fighting this issue and recommendations for better control measures. The group will also examine whether the government’s crypto investors and consumer protection efforts are enough.
The APPG also said it would ‘borrow’ insights from other regulators on their approach to crypto regulation. The official statement states that individuals or groups willing to share their opinions must do so before September 5, and they can make their submissions via email. The group adds that it would appreciate it if submissions were accompanied by relevant proofs and research, which can be added as an appendix.
Cameron adds that it is important that authorities and regulators continue to keep an eye on happenings in the digital asset sector. According to the crypto UK website, submissions can include a review of UK regulators (the FCA and the Bank of England)’ current crypto regulation approach.
Also, the group would entertain submissions about what crypto participants expect from a UK central bank digital currency (CBDC), including possible use cases and risks. Last week, the UK law commission released a consultation paper proposing additional regulatory policies for the crypto sector.
The paper’s focus was to improve user protection rights for crypto holders. The commission suggested extending UK property laws to include cryptos since digital assets can also be classified as property. A July 2022 study by the HMRC revealed that 10 percent of UK adults are crypto holders. This figure shows a 5.7 percent rise compared to data released by the UK’s FCA in January 2021.