Lawmakers in the UK Call for Quickening Crypto Regulations
A group of British legislators has suggested that the government expedite the implementation of cryptocurrency legislation. The proposal for the employment of a dedicated person to supervise the regulation process comes from the All-Party Parliamentary Group (APPG) for Crypto and Digital Assets Group.
Advice from Pro-Crypto Lawmakers
The cross-party group of MPs and Lords, chaired by MP Dr Lisa Cameron, published a report today (Monday) that includes 53 recommendations for enacting cryptocurrency laws in the nation. These recommendations can be broadly divided into four categories: risk in financial crimes and consumer protection; the UK’s involvement in crypto laws; the nation’s approach to crypto regulations; and digital currencies issued by central banks.
“We acknowledge the concerns regarding the readiness of the current regulatory governance regime, and fully support the work needed to ensure that is strong, fit-for-purpose and enables the industry to realise its full potential while operating effectively and safely.”
— June 5, 2023, CryptoUK (@CryptoUKAssoc)
UK Seeking to Implement Cryptocurrency Laws
The UK government ended the public comment period on proposed financial services rules to include the cryptocurrency business in its jurisdiction, and this is when the report was released. UK Prime Minister Rishi Sunak had previously stated that he hoped to turn his nation into a centre for cryptocurrency.
“Following the Government’s announcement of its vision for the UK to become a global hub for cryptocurrency, the APPG launched our Inquiry to help identify the issues that policymakers will need to consider moving forward,” stated Prime Minister David Cameron.
“Given the rapid growth of cryptocurrency and digital assets, the timing of this report is critical to protect consumers while ensuring the UK’s leadership in this sector can be realised.”
At the moment, the Financial Conduct Authority (FCA), which regulates the nation’s larger financial services sector, requires registration from any bitcoin enterprises operating in the UK. But it turned out that the registration procedure was laborious and time-consuming. Following a protracted wait, the FCA only granted approval to a small number of applications. In the meantime, a different cross-party group of MPs recently disagreed with the government’s position and called for bitcoin trading to be treated like gambling. Bitcoin and Ether were described as “unbanked… with no intrinsic value, massive price volatility, and no discernible social good” by them.