A cross party group of MPs and Lords have formed an all-party parliamentary group (APPG) for the UK crypto and digital assets sector.
The group will act as a forum for parliamentarians, policymakers and the UK crypto sector to discuss policy and regulation of the industry.
The APPG will investigate the sector, including recent concerns raised around financial crime and advertising, look to address challenges, such as creating a regulatory framework that supports innovation and growth, and will discuss issues such as consumer protection.
It will consider the growth of crypto over recent years and the need for regulators and government to keep pace with the rapid advancements and increased adoption of crypto by consumers.
The group will look overseas for examples from other jurisdictions that have already taken steps to regulate the sector.
The cross-party group is made up of MPs and Lords from across the main political parties and represents a broad range of interests and expertise in financial services, digital and technology.
“The UK crypto sector has seen increased interest from consumers and regulators as the number of people who now own some form of cryptocurrency or digital asset has grown in recent years,” said Lisa Cameron MP, chair of the crypto and digital assets APPG.
“We are at a crucial time for the sector as global policy makers are also now reviewing their approach to crypto and how it should be regulated.
“We must ensure that we have an appropriate regulatory framework in the UK which supports innovation and guarantees that the UK remains an attractive destination for innovative firms to set up and grow.
“It is equally vital that we have a clear regime to protect consumers, ensuring they understand the risks, and are protected from the risk of economic harm posed by fraud and scams.
“Looking at how we can best protect consumers must be a top priority for government and regulators. There must be clear rules for the advertising of cryptoassets in the UK so customers are protected and to help UK crypto firms to stay within the rules.
“We also want to see clarity of regulation particularly in terms of money laundering protections. We will be looking at the work of the Financial Conduct Authority in registering UK crypto firms so that customers are clear about which firms are regulated and which aren’t but which also gives UK firms business certainty.”
CryptoUK, the UK’s crypto sector trade association which also provides the secretariat for the new APPG, welcomed the creation of the new group.
“We are delighted to see MPs and Lords in Westminster taking an interest in UK crypto,” said Ian Taylor, executive director of CryptoUK.
“The UK crypto sector has the potential to transform the UK’s financial services industry.
“UK crypto firms want to see a clear regulatory framework in the UK that supports growth and innovation in this space but that also encourages a strong and healthy UK market and promotes consumer protection.”