The Crypto and Digital Assets All-Party Parliamentary Group (APPG) has released an extensive report containing 53 crucial recommendations for regulating the UK’s cryptocurrency and digital asset market.
Titled “Realising Government’s Vision for The UK to Become a Global Hub for Cryptocurrency & Fintech Innovation,” the report aims to provide policymakers with a comprehensive understanding of the cryptocurrency space and its implications.
One of the key highlights of the report is the emphasis on the significant role of UK regulators in achieving the government’s objective of establishing the country as a prominent hub for the cryptocurrency industry. The report stressed the need for a coordinated strategy across various government departments and agencies that may be affected by the advancement of cryptocurrencies, digital assets, and blockchain technology.
The report also proposed the creation of a new position—a “Crypto Tsar”—to facilitate collaboration among these agencies. It suggested that the roles of the office would be pivotal in coordinating efforts between ministries, ensuring a cohesive and unified strategy.
The APPG is an advocacy group comprising members of the House of Commons and House of Lords with a shared interest in specific issues. This report is the result of a series of sessions involving its members, regulators, government officials, and industry stakeholders to discuss the challenges and opportunities in the crypto sector and explore the need for future regulation.
APPG Chair Lisa Cameron emphasized the importance of this recommendation in securing the UK’s leadership in the industry and safeguarding consumers as cryptocurrencies gain popularity. She stated that the report “exists to help policymakers better understand the ever evolving world of cryptocurrency and digital assets and explore the urgent need for UK regulation.”
Meanwhile, several traditional financial institutions in the UK have opposed the government’s plans to regulate cryptocurrencies. These institutions have identified various potential risks associated with the regulation of Bitcoin and digital assets, such as concerns about accuracy, taxation, and consumer protection.
The Institute of Chartered Accountants in England and Wales (ICAEW) warns that regulation could inadvertently create a false sense of trust among customers. According to the ICAEW, if people believe that the legislation has effectively addressed or mitigated the known risks associated with crypto assets, they may develop an “unearned trust” in the market.
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