UK Lawmakers Begin Probe on Crypto Industry
- The crypto industry is beginning to capture increased global interest despite the bear market.
The United Kingdom is one of the regions seeking to prioritize the crypto industry and has been making inquiries about the sector. The Treasury Committee of the UK House of Commons has requested information from the general public regarding the risks and opportunities associated with cryptocurrencies. The committee recently said that it has started research into the function of digital assets in the United Kingdom and invited people to submit written comments.
The Treasury Committee announced that it would investigate the potential effects of cryptocurrencies and distributed ledger technology on people, organizations, and financial companies. The body further noted that it plans to examine how the Financial Conduct Authority, the Bank of England, and the UK government could provide regulation to offer adequate protection for financial institutions, firms, and private individuals.
🚨 NEW INQUIRY 🚨
— Treasury Committee (@CommonsTreasury) July 13, 2022
🪙 We've launched an inquiry on 'The crypto-asset industry'
🔎 We'll look at the potential risks and opportunities associated with the use of crypto-assets, among other things
📖 Learn more and submit written evidence here 👇https://t.co/kBwNc6346I pic.twitter.com/IidIqSWHuj
Members of the public have until September 12 to submit their findings, which the committee intends to use in its report to parliament. A lot of questioning has been ongoing in the UK as the nation edges closer to fully adopting the industry. The Bank of England was asked about the advantages and dangers of a central bank digital currency, (CBDC), and the environmental impact of using crypto-asset technology. The UK is also interested in seeing how other countries address cryptocurrencies.
The British public is expected to write about how they think digital currencies like Stablecoin, will likely overtake and replace traditional currencies. The evidence also seeks to examine the benefits and dangers of using cryptocurrency for social inclusion. The big question remains if the UK government and authorities are prepared to take advantage of the benefits that crypto-assets bring while also minimizing the risks.
The committee also pointed out NFTs as one of the areas of interest. NFTs are one of the most useful digital assets but, the committee wants to evaluate how NFTs will likely improve or affect the UK’s economy.
The Growing Interest in Cryptocurrency
With its wings expanded around the globe, cryptocurrency is quickly becoming the most adaptable and practical way to conduct financial transactions. Governments all around the world first had their doubts about cryptocurrencies due to their anonymity. But things are starting to change gradually. Worldwide, governments are expressing interest in becoming crypto-friendly nations. Most of these countries are accepting crypto, legalizing them, and even reshaping their entire economy to accommodate them.
Prior to now, the vast majority of countries perceived cryptocurrency operations as a means of money laundering. But nowadays, many of these countries do not have cryptocurrency taxes for crypto firms. But despite the growing interest in the industry, there are calls for regulations. Most countries believe the crypto space needs to be regulated to curb some of the menaces such as crime.
Europe appears to be the most serious continent about regulating crypto. The European Central Bank recently called for a single regulatory body across the continent, emphasizing the need for uniformity in addressing cryptocurrencies. The US is also moving towards regulating crypto activities in the country, under the crypto-friendly Biden administration.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
