UK Crypto Industry Calls for Urgent Regulation to Unlock Potential
The All Party Parliamentary Group for Crypto and Digital Assets has emphasized the need for urgent regulation in the UK’s crypto industry while acknowledging its potential benefits. In their report, the group highlighted the importance of addressing risks related to financial stability, privacy, and security while carefully considering the development of a central bank digital currency (CBDC), also known as the digital pound. The report also stressed the need to foster private sector innovation and ensure that regulation does not stifle growth.
Led by Dr. Lisa Cameron MP, the Crypto and Digital Assets APPG conducted an inquiry to assess the state of the digital assets industry in the UK. The group engaged with various stakeholders, including operators, regulators, experts, and the public, to gather valuable insights for shaping regulatory measures.
The report aligns with the UK government’s goal of becoming a global hub for cryptocurrency and fintech innovation. It acknowledges that cryptocurrencies have the potential to transform the financial services sector and recognizes the growing interest and adoption among consumers and investors. To realize this potential, the industry requires comprehensive regulation to protect consumers, provide investment guidelines, and stimulate economic growth.
The report emphasizes the need for the UK to act swiftly and establish clear regulatory frameworks within the next 12-18 months to secure its position as a leader in the sector. It encourages the government to create an attractive environment for inward investment and support existing businesses to prevent growth from moving elsewhere.
While economic crime associated with cryptocurrencies remains relatively low, the report acknowledges the potential for misuse. Therefore, the government is advised to adopt a proportionate and risk-based approach to address these risks and gather evidence to inform its regulatory response.
Overall, the report highlights the significance of timely regulation in driving positive growth, ensuring consumer protection, and positioning the UK as a leader in the global crypto industry.
Clever Robot News Desk 6th June 2023