The UK Parliament’s Crypto and Digital Assets All Party Parliamentary Group (APPG) recently published a report to suggest 53 regulatory recommendations to the government regarding the crypto and digital asset industry.
The report is based on an official inquiry into the sector, which involved evidence sessions with industry experts, regulators, government officials, academics, and consumer groups.
The APPG, chaired by Dr. Lisa Cameron MP, said that the crypto sector is growing rapidly and is here to stay. Therefore, it needs a clear and comprehensive regulatory framework to protect consumers, prevent economic crime, foster innovation, and support the UK’s role as a global leader in financial services.
Furthermore, One of the report’s key recommendations is to appoint a ‘Crypto Tsar’ who can coordinate across different government departments and agencies with a stake in cryptocurrency, digital assets, and blockchain technology.
The report highlights that current financial regulations in the UK are inconsistent and fragmented, which creates confusion for consumers and businesses. The solution proposed is the establishment of a Crypto Tsar who will ensure a consistent approach to regulation across the country.
The report recommends policymakers, regulators, and industry stakeholders to collaborate and engage more to comprehend the benefits and obstacles of digital currencies. It also proposes establishing a Crypto Advisory Board by the government that can offer specialized suggestions and guidance on crypto policy concerns.
Crypto Education, Innovation, And Research Are Also Key Priorities
The report revealed the necessity of more education and awareness among consumers and investors regarding the advantages and risks involved in digital assets. It recommended that the government work with industry bodies like CryptoUK to develop and promote best practices and standards for crypto businesses.
The government was advised in the report to promote innovation and research within the crypto industry. The focus should be on decentralized finance (DeFi), non-fungible tokens (NFTs), stablecoins, and central bank digital currencies (CBDCs).
According to APPG, the UK has the potential to emerge as a global crypto and digital asset hub. However, swift action must be taken to create a conducive regulatory environment to support growth and innovation.
MP Dr. Lisa Cameron stated that the report is essential to maintain leadership in the industry and protect consumers. The inquiry received feedback from numerous experts who highlighted growth opportunities as well as pressing challenges.
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Furthermore, she added that the report aims to contribute to future Government policy on crypto regulation. The authors are committed to collaborating with all stakeholders, including the Government, regulators, and industry professionals, to ensure regulatory measures are implemented effectively.