UK Treasury To Investigate Crypto Pros And Cons
- The UK Treasury has initiated an investigation into the pros and cons of crypto
- The inquiry will also cover the potential impact of distributed ledger technology
The United Kingdom Treasury Committee has recently launched an investigation into the risks and benefits that crypto assets may bring to businesses and consumers and the government (and associated bodies).
As per the official note, the inquiry will also cover the potential impact of distributed ledger technology on financial infrastructure and financial institutions like the Central Bank.
The inquiry is requesting evidence related to the possible effects of distributed ledger technology (DLT) on financial institutions, particularly the central bank and financial systems.
The Treasury also aims to address topics including the government’s, the FCA’s, and the Bank of England’s regulatory approach to crypto assets. In addition, it is looking for answers to how the market is currently regulated in other countries in order to safeguard businesses and consumers in the digital asset ecosystem adequately without limiting innovation.
The most recent inquiry also asks for proof of the effectiveness of current anti-money laundering and advertising regulatory measures. It also wants opinions on how government processes like the tax system can be more widely adopted in the region.
The Treasury has requested submissions on a number of topics, including the opportunities and risks that the introduction of a BoE Digital Currency brings, the effect of cryptocurrencies on social inclusion, and the capacity of the government and regulatory agencies to “grasp the opportunities” presented by crypto assets.
A tough stance
The U.K. has recently implemented a stricter stance toward the cryptocurrency industry and has stepped up its attempts to handle divisive issues. In December 2021, the U.K.’s advertising authority, the Advertising Standards Authority, banned seven bitcoin advertisements. More recently, it issued a warning to more than 50 cryptocurrency companies, encouraging them to check their adverts for legality. In essence, the authorities aimed to bring crypto advertisements under the same regulations as financial advertising.
Moreover, the United Kingdom’s Financial Conduct Authority, or FCA, will “absolutely” consider recent instability and UST depegging in the crypto markets while establishing regulatory standards with Her Majesty’s Treasury for the industry, executive director of markets Sarah Pritchard stated recently.