APPG - CryptoUK

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Crypto Inquiry 2022

WHAT IS THE APPG?

The Crypto and Digital Assets All Party Parliamentary Group (APPG) provides a forum for parliamentarians, regulators, Government and industry to discuss the challenges and opportunities relating to the crypto sector and to explore the need for future regulation of the sector.
This is an important time for the UK crypto sector as interest in crypto and digital assets has increased over recent years and continues to grow.
According to the Financial Conduct Authority (FCA), 3 million UK adults now own some form of cryptocurrency. Governments and regulators around the world are now looking at their own approaches to crypto regulation. The APPG will help to bring together industry stakeholders and policymakers in order to understand the regulatory challenges and what more can be done from a policy perspective.
The group will act as a forum for discussion and debate on the key issues affecting the crypto sector and the need for future regulation, specifically:
- - - what a suitable regulatory framework for the sector might look like, exploring what approaches other countries have adopted around the world in terms of regulating crypto.
    - Looking at the work of the UK Government and of UK regulators in terms of its own crypto policy so far.
    - explore a range of other issues relating to the crypto sector including economic crime, protecting customers from fraud and scams, advertising, financial education and inclusion, international trade, the UK’s role as a leader in financial services and innovation, environmental issues and climate change, and the future of digital payments.

Chair
The group is chaired by Lisa Cameron MP, Scottish National Party (SNP) MP for East Kilbride, Strathaven and Lesmahagow.

Secretariat
CryptoUK, an independent trade body which represents the UK Crypto and Digital Assets sector, provides the secretariat for the APPG. CryptoUK aims to work constructively with Parliamentarians, Government, Regulators and the wider sector to advance the UK’s approach to regulation of the crypto and digital assets sector.

APPG Register Entry
You can read the group’s full entry in the Houses of Parliament’s Register of All-Party Parliamentary Groups .

Vice Chairs

Martin Docherty-Hughes MP (SNP)
Martin Docherty-Hughes is the SNP MP for West Dunbartonshire. Martin is SNP Spokesperson on Foreign Affairs, Industries of the Future and Blockchain Technologies. He is also Chair of the All-Party Parliamentary Group on Blockchain.
Harriett Baldwin MP (Conservative)
Harriett Baldwin is the Conservative MP for West Worcestershire. She is a member of the Treasury Select Committee and has served in a number of Government roles including as Minister of State at the Foreign Office, and Economic Secretary to the Treasury. Harriett is Vice Chair of the All Party Parliamentary Groups on Women in Enterprise; Fair Business Banking; and Social Enterprise.
Lord Taylor of Warwick
Lord Taylor is a non affiliated member of the House of Lords. He is Vice Chair of the Digital Identity, Financial Technology, and Video Games and Esports APPGs.
Alexander Stafford MP
Alexander is the Conservative MP for Rother Valley. He currently serves on the Business, Energy and Industrial Strategy Select Committee. He is a Chair of the All Party Parliamentary Group on Algeria and Vice Chair of the Fair Business Banking APPG.

Officers

Lord McNicol of West Kilbride (Treasurer)
Lord McNicol of West Kilbride is a British Labour politician and trade unionist, and Labour member of the House of Lords. From 2011 to 2018, he was general secretary of the Labour Party and was appointed to the House of Lords in 2018.
Philip Davies MP
Philip Davies is the Conservative MP for Shipley. He is a member of the Women and Equalities Committee, and was formerly a member of the Digital, Culture, Media and Sport Committee.
Simon Fell MP
Simon is the Conservative MP for Barrow and Furness. He is a member of the Home Affairs Select Committee and is Chair of the All Party Parliamentary Group on Cyber Security.
Lord Cromwell
Lord Cromwell is a crossbench member of the House of Lords. He is a member of the House of Lords Audit Committee and is an officer of the Entrepreneurship APPG and also Vice Chair of the Fair Business Banking, Internet, Communications and Technology, and Open Banking and Payments APPGs.
Lord Vaizey of Didcot
Lord Vaizey is a Conservative member of the House of Lords. He was a former Conservative MP and former minister for DCMS and Business. He is a member of the Lords’ Communications and Digital Committee and is Vice Chair of the Video Games and Esports APPG.
Bell Ribeiro-Addy MP
Bell Ribeiro-Addy is the Labour MP for Streatham. She is a member of the Women and Equalities Select Committee and also served as Shadow Minister of State for Immigration.

Andersen

APPG Advisory Board Member , Corporate Member ,

B2C2

APPG Advisory Board Member , Community Member ,

BCB Group

APPG Advisory Board Member , Executive Member ,

Circle

APPG Advisory Board Member , Executive Member ,

CMS

APPG Advisory Board Member , Institutional Member ,

Copper

APPG Advisory Board Member ,

Crypto.com

APPG Advisory Board Member , Executive Member ,

CryptoCompare

APPG Advisory Board Member , Executive Member ,

Elliptic

APPG Advisory Board Member , Corporate Member ,

Outlier Ventures

APPG Advisory Board Member , Executive Member ,

Simmons & Simmons

APPG Advisory Board Member , Executive Member ,

State Street

APPG Advisory Board Member ,

Worldpay

APPG Advisory Board Member , Institutional Member ,

UK Parliamentary Group Announces Crypto Inquiry

4 August, 2022

The All Party Parliamentary Group (APPG) for the UK Crypto and Digital Assets sector has announced an inquiry into the UK’s growing cryptoasset industry.

The inquiry will consider the need for further regulation of the UK crypto sector;

The APPG has called for input from interested stakeholders across the sector;

APPG Chair Lisa Cameron MP says the UK must not take its foot off the gas when it comes to crypto.

Read the full press release here

HM Treasury responds to the joint letter on cryptoasset promotions by Lisa Cameron MP, Chair of the Crypto and Digital Assets APPG, and Adam Afriyie MP, Chair of the Fintech APPG.

28 June, 2022

Government says that “It has been very clear that UK authorities are committed to supporting the growth of the cryptoasset sector in a safe and competitive manner. A marketing ban on cryptoasset financial promotions is not the intended outcome of the legislation or the supporting FCA rules.”

Read the full letter here

Lisa Cameron MP Responds to the Government Announcement on the Plan to Make UK a Global Cryptoasset Technology Hub

06 April, 2022

Chair of the APPG Lisa Cameron MP said:

“I welcome the Government’s announcement setting out its intentions for the UK to be a global hub for crypto companies.

The UK crypto sector has grown rapidly over recent years and I am pleased that the Government has said it recognises the opportunities and potential of the UK crypto sector which can deliver jobs, talent and economic benefits to the UK.

The UK has a strong track record in financial services and it's important that we maintain high standards of consumer protection and regulatory compliance for the crypto and digital asset sector. We must also be careful that we do not hinder growth and innovation in this area and send a clear message that the UK is open for business when it comes to crypto.

The Government must now deliver on its commitment through action. This is a crucial time for the sector and we must act quickly or the UK risks being left behind.”

Lisa Cameron Responds to the FCA Announcement that the Temporary Registration Regime is to be Extended for Cryptoasset Businesses and Comments on how it Lacks Clarity

30 March, 2022

Chair of the APPG Lisa Cameron MP says FCA’s approach to registration of UK crypto firms is costing the UK jobs, talent and revenue.

“We have heard numerous reports of UK firms experiencing significant delays from the FCA in relation to their applications as well as poor communication and a lack of clarity from the regulator throughout this process.The UK crypto sector overwhelmingly supports regulation and we have seen firms applying to the FCA for registration precisely because they want to be compliant and want to continue to operate in the UK.The lack of clarity from the FCA has presented huge challenges to firms in terms of business certainty and we are still awaiting an update from the FCA and Government in terms of what will happen after the end of March deadline.We are now hearing of firms actively leaving the UK as a direct result of the FCA’s approach which will cost the UK in terms of jobs, talent, and revenue.”

Lisa Cameron Responds to the HMRC Updated Guidance of DeFi Staking and Lending Chargeable Gains

09 February, 2022

Lisa Cameron MP, Chair of the Crypto and Digital Assets APPG said:

“It's crucially important that we have a consistent approach in the UK when it comes to cryptoassets, including both the regulatory and tax treatment of this emerging market.

The Government has said that it wants the UK to be an attractive destination for innovation and investment particularly when it comes to financial services.

To achieve that we need to have a clear regulatory framework aligned with tax treatments for cryptoassets in the UK which provides clarity for both businesses and consumers.

We have some excellent examples of innovative crypto businesses here in the UK, not just in London, but across the country, employing hundreds of people in highly skilled roles, and we don't want to run the risk of losing these businesses to other overseas markets.

We need a clear and consistent approach to crypto policies from all parts of Government and regulators need to work with the crypto sector when developing policies and guidance such as this.”

Lisa Cameron Responds to the Treasury Select Committee Report on Fraud, Scams and Economic Crime

03 February, 2022

Lisa Cameron MP, Chair of the Crypto and Digital Assets APPG said:

“I welcome today’s report and its recommendations to protect consumers from fraud and scams. There can be no place for bad actors in the UK cryptoasset sector. We want to see a thriving, well regulated industry that enables the highest standards of consumer protection, and confidence for consumers that they are dealing with regulated firms. The report has highlighted delays in the registration of UK cryptoasset firms by the Financial Conduct Authority (FCA), and a number of firms are still awaiting registration. I’d like to see the FCA accelerate this as a priority so that we provide regulatory clarity, both for businesses themselves and for consumers.We need to see a balanced and proportionate approach to regulation of cryptoassets in the UK, that protects consumers without stifling innovation.”

Lisa Cameron Responds to Government Announcement on Cryptoasset Promotions

18th January, 2022

Lisa Cameron MP, Chair of the Crypto and Digital Assets APPG said:

“I welcome the Government’s announcement on plans to regulate the promotion of cryptoassets in the UK. Interest in crypto has grown over recent years especially since the pandemic as more of us have embraced digital technology.

We can't put crypto back in its box. Consumers are already embracing this sort of technology and are in many ways way ahead of the curve.

Whilst adoption of crypto has increased, overall understanding of cryptocurrency has declined. Consumer protection needs to be a key priority to make sure that consumers understand the potential risks. We need clear rules and guidance for the promotion of crypto and digital assets so that consumers are protected and so that crypto firms know what they can and can't do and don't fall foul of the rules.

We want to see a robust, and well regulated crypto sector in the UK that champions high standards in terms of consumer protection whilst harnessing the potential opportunities in the crypto and digital assets sector.”

CRYPTO INQUIRY 2022

The Crypto and Digital Assets All Party Parliamentary Group (APPG) has announced details of an inquiry into the UK Crypto and Digital Assets sector.

The inquiry will focus on a range of key areas including the UK’s current approach to regulation of crypto and digital assets and the Government’s plans to make the UK the global home of crypto investment; the role and current approach of UK regulators including the Bank of England, the FCA and the ASA in relation to crypto and digital assets; the potential of Central Bank Digital Currencies; and potential risks in terms of Consumer Protection and Economic Crime.

As part of its inquiry the APPG is inviting views from across the sector including crypto operators, regulators, industry experts and Government on the need for regulation of the sector.

The APPG is inviting written submissions from interested parties until the 5th September 2022.

The group will also be holding a number of evidence sessions over the coming months which will hear from key stakeholders. The group will produce a report with key recommendations and will share its findings with Government for consideration as well as with the Treasury Select Committee in Parliament which has also announced an upcoming inquiry into the sector.

Announcing the inquiry Lisa Cameron MP, Chair of the Crypto and Digital Assets APPG, said:

“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 policy makers are also now reviewing their approach to crypto and how it should be regulated.

As part of its inquiry the APPG will investigate the state of the UK crypto sector and recent concerns raised around financial crime and advertising. It will consider the growth of crypto over recent years and the need for regulators and Government to keep pace with the rapid advancements in innovation and technology, as well as considering whether enough is being done in terms of consumer protection. The group will also look at international examples from other jurisdictions that have already taken steps to regulate the crypto sector.

It's vital that the UK does not take its foot off the gas and that Government and regulators keep to their commitments when it comes to crypto and digital assets.”

Call for Evidence

The APPG invites views from interested parties on the following areas of interest:

- The UK as a global home of crypto investment:
  - The potential opportunities and risks associated with crypto and digital assets in the UK.

The UK’s current approach to regulation of crypto and digital assets:
- The current state of regulation in the UK of crypto and digital assets;
- Whether the UK’s current approach is aligned to the Government’s stated ambition for the UK to be a global hub for crypto investment?
- What is required to fulfil this ambition?

The role and current approach of UK regulators including the Bank of England, the FCA and the ASA in relation to crypto and digital assets:
- Views on the current approach by UK regulators, specifically the Financial Conduct Authority, the Bank of England, and the Advertising Standards Authority.

Central Bank Digital Currencies:
- Views on what any UK CBDC should look like;
- Views on the potential use case for a UK CBDC;
- Views on the opportunities and risks associated with a UK CBDC.

Consumer Protection and Economic Crime:
- Views on the potential risks posed to consumers by crypto and digital assets;
- Views on whether current protections in place are sufficient and any further action that may be required in this regard;
- The level of economic crime in relation to crypto and digital assets and the effectiveness of current controls in place to combat any potential risks.

We also encourage submissions on any other relevant issues not listed above.

Submissions should be in word format and be no longer than 6 pages. We will accept relevant reports and research as part of any written submission as an appendix. Please reference any relevant elements of any reports or research as part of your written submission.

Written submissions should be sent to appg@cryptouk.io

The deadline for written submissions is 5th September 2022.

CRYPTO & DIGITAL ASSETS

All-Party Parliamentary Group

WHAT IS THE APPG?

APPG Site visit to BCB Group

Inaugural APPG Round Table - 24th May 2022