A group of UK lawmakers, known as the Crypto and Digital Assets All Parliamentary Group (APPG), has urged the government to expedite the implementation of regulations for cryptocurrency financial services, news reports said.
In a recently published report, the APPG emphasized the importance of immediate regulation for the growing crypto industry, stating that cryptocurrency is here to stay.
The group, comprising lawmakers from various political parties and both houses of parliament, put forth 53 recommendations for regulating cryptocurrencies within the country.
The UK government, under Prime Minister Rishi Sunak, recently concluded a consultation on bringing cryptocurrencies within the scope of existing financial services regulations. CryptoUK, a lobbying organization associated with the APPG, responded to the consultation by expressing the need for specific crypto regulations to be established within a year—a goal the government has expressed its commitment to achieving.
Concurrently, parliamentary bills are under discussion to enhance lawmakers’ authority over the crypto sector and enable law enforcement agencies to seize and freeze digital assets.
Crypto companies operating in the UK must be registered with the Financial Conduct Authority (FCA). However, the APPG believes that dedicated regulations are crucial to protect consumers and ensure the country’s leadership in the crypto industry. The APPG’s report’s timing is vital to addressing cryptocurrency’s rapid growth while safeguarding stakeholders’ interests.
The APPG launched its inquiry in August last year, following a government announcement by then-Finance Minister Sunak in April. The government expressed its intention to position the UK as a cryptocurrency hub. During the inquiry, the APPG sought input from various stakeholders, including crypto industry members, regulators, and the general public.
The report outlines the recommended role of a government official overseeing crypto regulations and the current approaches taken by regulators such as the Bank of England, the Advertising Standards Authority, and the FCA. The lawmakers also explored the potential of introducing a central bank digital currency, with the government currently seeking public input before making a decision on its issuance.
As the crypto industry continues to evolve and expand, the call for timely regulations and dedicated oversight reflects the UK lawmakers’ recognition of the need to balance consumer protection and fostering innovation in this burgeoning sector.
