APPG Urges Government to Address Global Gaps in Crypto Regulation
This week, Lord Taylor of Warwick, member of the Crypto and Digital Assets All-Party Parliamentary Group (APPG), supported by CryptoUK as secretariat, used a question in the House of Lords to press the Government on how it intends to strengthen the UK’s cryptoasset regulatory framework in response to growing international divergence on crypto regulation.
Lord Taylor asked what steps the Government is taking to enhance the United Kingdom’s regulatory regime for cryptoassets and mitigate risks arising from fragmented global regulation.
Responding for the Government, Lord Livermore, Financial Secretary to the Treasury, confirmed that legislation will be introduced this year to establish a comprehensive financial services regulatory regime for cryptoassets in the UK. He also reiterated that the UK continues to engage with international partners through forums such as the Financial Stability Board (FSB) to strengthen global standards and respond to the cross-border challenges posed by digital asset innovation.
The exchange follows recent warnings from the Financial Stability Board, the G20’s financial stability watchdog, which highlighted “significant gaps and inconsistencies” in global crypto regulation. In a recent report assessing nearly 40 jurisdictions, the FSB said uneven regulatory approaches could allow cryptoasset providers and stablecoin issuers to engage in jurisdictional “shopping” to take advantage of lighter-touch regimes.
The FSB said gaps in regulation could pose risks to financial stability and to the development of a resilient digital asset ecosystem.
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