In a recent move, a parliamentary group in the United Kingdom has released its recommendations to the government for the crypto and digital asset sector in large. Notably, the said list of suggestions prioritises the appointment of an official to ensure a coordinated regulatory approach to crypto and digital assets.
On Monday, the Crypto and Digital Assets All Party Parliamentary Group (APPG) repressed report containing 53 recommendations for the industry. The organisation says it aims to help policymakers better understand the crypto space.
While the 51-page long document contains recommendations along with o little explanation to each, in its conclusion it highlights the dire need of regulating the sector. The report outlined that the rapid growth of crypto and digital assets suggests that “the sector is here to stay.” Further, the report cited that because of this, there is an urgent need for crypto regulation in the U.K. to protect consumers and create guardrails that ensure economic growth.
Lisa Cameron, APPG chair, said that given the growth of crypto, the report is vital to ensure the U.K.’s leadership in the sector and that consumers are protected.
According to the report, U.K. regulators will play a vital role in delivering the government’s vision to make the U.K. a global crypto hub. Following the appointment of the current British prime minister, Rishi Sunak, there have been ample anticipations of country’s vision to be a crypto hub given his previous crypto advocacy.
For this, the lawmakers in the report also outlined the importance for a coordinated approach across various government departments and agencies that could potentially be affected by the growth of crypto, digital assets and blockchain technology. To solve the various rising challenges, the report suggested the creation of a role coordinating across departments. Quoting the report:
Government should consider the appointment of a ‘Crypto Tsar’ can help coordinate across departments to ensure a consistent approach.
Notably, much like other nations across the globe, the United Kingdom is speedily progressing on the crypto regulation. Recently, in another report, a panel of British lawmakers has recommended regulating the trading of “unbacked cryptoassets” such as Bitcoin (BTC) and Ether (ETH) as gambling rather than a financial service. Additionally, Andrew Griffith, financial secretary to the UK Treasury, said that regulations in the country are set to solidify within the next 12 months or so besides his promise of a timely and sensible regulation.
The UK’s Financial Services and Markets Bill (FSMB) is bound to shape the forthcoming regulations for stablecoins and crypto assets in the country. In such an environment, it is expected that amendments will be made to the bill, leading to heightened compliance obligations for businesses operating in the crypto space.