As the United Kingdom continues to establish a clear cryptocurrency regulatory outlook, several entities are emerging to contribute towards creating policy for governing the sector. In particular, the All-Party Parliamentary Group (APPG) has unveiled an inquiry that seeks to consider the need for further regulation of the UK crypto space.
The inquiry aims to cover several factors, including the existing UK approach to crypto regulations and the government’s initiatives to establish the region as a global hub for digital assets, the APPG said in a press statement published on August 4.
Furthermore, the inquest will also review UK regulators’ role and current approach to digital asset regulations, Central Bank Digital Currencies (CBDC), and the risks involved with cryptocurrencies.
As part of the inquiry, APPG is expected to gather views from crypto operators, regulators, industry experts, and government, including agencies like the Bank of England, the Financial Conduct Authority and the Advertising Standards Authority.
Crypto’s growing popularity in UK
According to the group’s chair, Lisa Cameron, the growth of cryptocurrencies in the country has motivated the inquiry. For instance, research indicates that as of July 2022, 10% of UK adults held or have held cryptocurrencies.
“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. We are at a crucial time for the sector as global policymakers are also now reviewing their approach to crypto and how it should be regulated,” said Cameron.
Stakeholders support for inquiry
Notably, players in the crypto sector under CryptoUK have welcomed the inquiry, maintaining it will bring sanity to the industry.
“The UK crypto sector recognises the importance of a well regulated industry in the UK and supports regulation which provides business certainty and encourages 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,” CryptoUK executive director Ian Taylor.
APPG is expected to share the inquiry’s recommendation with the government for consideration. Interested stakeholders have until September 5 to submit their views.
As part of proposing laws to govern the crypto sector, the UK Law Commission also published a consultation paper focusing on determining crypto ownership to protect users’ rights. The commission proposed extending UK property laws to recognize and preserve digital assets.