Bitrabo Editorial
The UK government plans to become a global hub for digital assets, and the Crypto and Digital Assets All Party Parliamentary Group (APPG) suggests applying comprehensive crypto regulations to achieve this goal. The APPG urged the UK government to provide clear regulatory frameworks for crypto within the next 12 to 18 months. The group identified key elements of policy development and challenges surrounding the regulation of digital assets.
A Call for Crypto-Dedicated Regulations in the UK
The Crypto and Digital Assets APPG provides a forum for parliamentarians, regulators, government, and industry to discuss challenges and opportunities in the crypto sector, and to establish the importance of crypto industry regulation. The group proposed 53 recommendations for crypto regulation in the UK while commending the UK government’s proactive actions to explore the potential of digital pound (CBDC).
However, the APPG is concerned about whether regulators have the appropriate resources, technical expertise, and capacity to discharge their duties effectively. Therefore, the group recommends a coordinated approach across departments and agencies that could be affected by the growth of cryptocurrencies. Furthermore, it suggested that the government appoint a “Crypto Tsar” to help coordinate across the departments.
Potential Risks Associated with Crypto
The APPG supports crypto development, but it also urges the UK government to consider the potential risks associated with the continued growth and popularity of digital assets. Lawmakers have identified risks associated with financial instability, consumer protection, and economic crime. The UK government has outlined plans to deliver a crypto regulatory framework in line with its vision to become a global digital assets hub. The parliament is currently debating bills to grant regulators oversight of crypto.