A group of lawmakers has urged the UK Government to introduce suitable regulation of crypto financial services as soon as possible and to appoint a dedicated watchdog to oversee the process.
The Crypto and Digital Assets All Parliamentary Group (APPG) published a report on June 5th, claiming that cryptocurrency is a growing trend, which is here to stay, and hence needs to be regulated immediately. The cross-party group of lawmakers made a total of 53 recommendations concerning the proposed regulation of cryptocurrency in the UK.
The Government of Prime Minister Rishi Sunak recently closed a consultation regarding the regulation of cryptocurrency in the UK by bringing crypto into the scope of the financial service regulations that already exist in the country. In its response to the consultation, a local lobby group affiliated with the APPG – CryptoUK – said it was willing to see specific crypto regulations implemented in the UK market within a year. Although the Government has said it remains hopeful to deliver such regulations, it has still not given a deadline for this to happen.
The Parliament is already debating on bills aimed at providing local lawmakers with more powers over the cryptocurrency sector and helping British law enforcement agencies seize and freeze cryptocurrency.
The latest report of the APPG was made public after the Treasury Committee at the House of Commons called the Government to regulate cryptocurrency as gambling in the UK instead of as financial services. At the time, the campaign faced instant criticism from the country’s cryptocurrency sector, and now, the Crypto and Digital Assets All Parliamentary Group showed its support for Government’s plans to address various issues, such as risks to crypto-related economic crime and financial stability, limited interactions between UK banks and crypto companies, etc.
Crypto Companies Need to Be Registered with the FCA
Although many campaigners have been questioning the nature of crypto companies, saying they are very much like gambling companies, such operators are required to be registered with the country’s Financial Conduct Authority (FCA) in order to be able to operate in the country. Some crypto companies, however, have noted that they had faced serious delays or had the FCA reject their applications for registration without providing them with clear explanations as to the reasons why.
In a press release issued at the beginning of the week, the chair of the APPG, Lisa Cameron, explained that taking action to protect consumers is crucial, considering the rapid growth of cryptocurrency and digital assets in the UK market.
The Crypto and Digital Assets All Parliamentary Group’s inquiry into crypto was launched in August 2022, following an announcement by Mr Sunak, then occupying the role of the UK’s finance minister, that the Government was willing to take advantage of the increasing popularity of cryptocurrency and turn the country into a crypto hub. As part of the aforementioned inquiry, the group acquired views from members of the country’s regulatory bodies, representatives of the crypto industry, and the general public.
In their latest reports, British lawmakers have made recommendations for the Government’s role and the regulators’ approach to the issue, saying that a coherent and coordinated approach has to be adopted across all governmental agencies and departments in terms of digital assets, cryptocurrency, and blockchain technologies.
The cross-party group of lawmakers also recommended that stablecoins are backed by high-quality assets, and even better – with fiat currency, which will make them a valid form of payment in the country.
Daniel Williams
Daniel Williams has started his writing career as a freelance author at a local paper media. After working there for a couple of years and writing on various topics, he found his interest for the gambling industry.
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