In a report published Monday, the Crypto and Digital Assets All-Parliamentary Group (APPG) called on the U.K. government to introduce crypto financial services regulations sooner rather than later and to appoint a dedicated official to oversee the process. The group, which includes lawmakers from different political parties and both houses of Parliament, made 53 recommendations for regulating crypto in the country. Prime Minister Rishi Sunak’s government recently closed a consultation proposing that the U.K. regulates crypto by bringing it into the scope of existing financial services regulations. “Given the rapid growth of cryptocurrency and digital assets, the timing of this report is vital to protect consumers whilst ensuring the U.K.’s leadership in this sector can be realized,” said Lisa Cameron, chair of the APPG.
The APPG inquiry was launched in August last year and included views from members of the crypto industry, regulators, and the general public. The report laid out recommendations for the government official’s role and around the current approaches of regulators like the Bank of England, the Advertising Standards Authority, and the Financial Conduct Authority (FCA). The lawmakers expressed in the report that they had concerns around whether or not regulators had sufficient resources to deliver on its crypto responsibilities and recommended that U.K. regulators have dedicated units for digital assets.
The APPG also explored the potential of a central bank digital currency, which the government is consulting on before it makes its decision on whether to issue one. The report also called for a new comprehensive tax framework for crypto and for the government to address issues such as U.K. banks limiting interactions with crypto companies, risks to financial stability, and crypto-related economic crime.