A cross-party group of UK MPs (Members of Parliament) has begun an investigation into the UK crypto and digital assets sector.
The All Party Parliamentary Group (APPG) for the UK crypto and digital assets sector is investigating the need for further regulation of the market and has invited stakeholders from the sector, including crypto operators, regulators, industry experts and the government, to give feedback.
The cross-party group is chaired by Dr. Lisa Cameron MP and consists of MPs and Lords, including former Digital Minister Lord Vaizey, Treasury Select Comittee member Harriett Baldwin MP, and former Secretary of State Matt Hancock MP. The group functions as a forum voor MPs, regulators and the UK crypto sector in order to discuss policy and regulation of the sector.
The inquiry is comprehensive and aims to assess the role of the government and regulatory agencies, consumer protection issues, and the use of digital currencies
The APPG investigation arrives at a moment when the UK crypto and digital assets is under heightened scrutiny. HM Treasury announced plans earlier this year to make the UK the global home of crypto investments, in an attempt to lure in crypto companies to the UK to stimulate the technology and fintech sector of the country.
APPG Chairman Cameron says: "We are at a crucial time for the sector as global policymakers also review their approach to crypto and how it should be regulated. It is vital that the UK does not take its foot off the gas pedal and that the government and regulators stick to their commitments when it comes to crypto and digital assets."
CryptoUK, the UK's independent trade association representing more than 100 members from across the crypto sector, welcomed the move.
Ian Taylor, executive director of CryptoUK, said, "The UK crypto sector recognizes the importance of a well-regulated industry in the UK and supports regulation that provides business certainty and promotes a healthy and robust market. We want to see a proportionate approach to regulation that balances the need for consumer protection with the need to support innovation and growth."
The launch of the study follows the creation of two legal task forces to examine what legislative changes are needed to support the issuance and transfer of digital securities on blockchain and DLT systems and on the issuance and transfer of digital securities under English private law. Both aim to submit preliminary legislative reform proposals to ensure the recognition and protection of digital assets.