Lawmakers in the United Kingdom are urging the government to accelerate the implementation of regulations concerning crypto financial services in the country. The Crypto and Digital Assets All Parliamentary Group (APPG) stressed the importance of promptly appointing a dedicated official to oversee and guide the regulatory process.
Implementing Robust Crypto Regulations
In a recently released report, the All Parliamentary Group (APPG) for Crypto and Digital Assets, consisting of lawmakers from different political parties and both houses of parliament, reiterated that cryptocurrencies are here to stay and emphasized the urgent need for regulation.
Moreover, the group presented a comprehensive set of 53 recommendations to govern the country’s crypto landscape effectively. Recognizing the significance of addressing this rapidly evolving sector, lawmakers strive to establish a robust regulatory framework that ensures the UK’s long-term stability, security, and responsible use of virtual currencies.
Prime Minister Rishi Sunak’s administration has recently concluded a consultation process, suggesting the inclusion of cryptocurrencies within the purview of existing financial services regulations to regulate them in the United Kingdom. In addition, the proactive step taken by the government aims to foster a comprehensive regulatory framework that aligns the treatment of crypto assets with established financial guidelines.
By bringing cryptocurrencies under existing regulations, the government seeks to ensure accountability, and consumer protection, among others. Commenting on the government’s consultation, CryptoUK, an advocacy group associated with the APPG, expressed its desire for the United Kingdom to establish dedicated and comprehensive crypto regulations within a one-year timeframe.
Notably, the government has expressed its commitment to achieving this target, aligning its aspirations with the urgency highlighted by CryptoUK.
The APPG Report
The APPG started its inquiry into the crypto sector last August. Moreover, the initiative came on the heels of an announcement made in April 2022 by Rishi Sunak, the then finance minister, wherein the government expressed its aspirations to position the country as a prominent crypto hub.
As part of this comprehensive inquiry, the APPG diligently sought input from various stakeholders, including crypto industry members, regulatory bodies, and the general public, to gain diverse insights into the multifaceted landscape of digital assets. Based on their findings, the lawmakers presented recommendations concerning the responsibilities and scope of the government agencies overseeing crypto regulation.
Additionally, the report scrutinized the existing strategies employed by regulatory bodies such as the Bank of England, the Advertising Standards Authority, and the Financial Conduct Authority (FCA). According to the report, the expansive scope of cryptocurrency and digital asset regulation necessitates a cohesive and harmonized approach across all government departments and agencies impacted by the evolving crypto, digital assets, and blockchain technologies landscape.
The report’s additional recommendations include other critical aspects of the crypto landscape. One suggestion was that stablecoins must be backed by high-quality assets, preferably fiat currency, to enhance their viability as a reliable payment medium.
It further highlights the economic impact of digital assets, urging the government to take significant steps to prevent potential crises.
