CRYPTO & DIGITAL ASSETS

NEWS & RESOURCES

Crypto & Digital Assets APPG - Parliamentary Roundtable on Access to Banking Services 2023 - Minutes

19 June, 2023

APPG Publishes Inquiry Report on Crypto and Digital Assets - Launch Event Speech from The Chair

9 June, 2023

At this week's launch of the APPG Inquiry in to crypto and digital assets (titled 'Realising Government’s Vision for the UK to Become a Global Hub for Cryptocurrency & Fintech Innovation’), CryptoUK, the secretariat of the APPG and all those who contributed to the inquiry, convened in Parliament to hear the launch event speech given by the Chair of the APPG, Dr. Lisa Cameron MP.

 

 

(This is a transcript of the speech which may differ slightly from delivery)

Lisa said:

'Good afternoon everyone and welcome to Westminster.
I am delighted to see so many of you here today for the launch of the APPG’s first report into the Cryptocurrency and Digital Asset industry.

I would like to first start by thanking each and every one of you for participating in our inquiry and for sharing your views. You have all helped to inform our report and to shape our recommendations to Government.

This has been a significant piece of work over the last ten months, since we first launched our initial inquiry in August last year.
We took the decision to launch our inquiry following the UK Government’s announcement of its landmark vision to make the UK the global hub for cryptocurrency investment.

We wanted to better understand the opportunities that a regulated industry could bring to the UK as well as the challenges and potential barriers for Government in making its vision for the UK a reality.

Our inquiry looked at a number of key areas including:

• • the potential for the UK to be a global hub for cryptocurrency investment; 
  • the UK’s approach to regulation of cryptocurrency and the role of UK regulators; 
  • the potential offered by Central Bank Digital Currencies and a Digital Pound; 
  • and the risks faced in terms of Consumer Protection and Economic Crime.

Our inquiry invited views from operators, regulators, industry experts and the general public on the need for regulation of the sector.
We also held a number of public evidence sessions in Parliament to hear from experts on the considerations that need to be made in order for the Government to achieve its vision for the sector.

The result is a wide ranging and comprehensive report that sets out the primary issues and considerations for policymakers when developing future regulation for the cryptocurrency and digital asset industry in the UK.

I want to thank all of you for sharing your views and helping us to create this report. 

I also would like to say a big thank you to our secretariat CryptoUK for their ongoing support. As the UK’s leading trade body, CryptoUK’s work is vital in helping policymakers better understand the complex world of cryptocurrency and digital assets and to ensure that the voice of the industry is heard.

Hopefully you will all have had a chance to take a look at our report, and we also have copies of the report for each of you here today. 

This is not the end of our work on this and I look forward to your views on the findings set out in our report and continued discussion about the need for regulation of the industry.

We have put forward over 50 recommendations in our report which we hope will establish a foundation for further discussion and debate regarding the future of cryptocurrency and digital asset regulation in the UK and to help inform policymakers.

I won't go through all of those recommendations today, but I did want to share with you some of our overall learnings from our inquiry.

Having heard from all of you throughout our inquiry it's quite clear that:

• • Cryptocurrency is here to stay and we need proper and clear regulation in order to protect consumers and to support the growth of the industry;

• • The growth of cryptocurrency and digital assets does present a number of potential opportunities and the UK is well placed to harness these opportunities but it will require cross governmental strategic planning to realise them.

• • Equally, without comprehensive regulation, there are also considerable risks particularly in terms of consumer protection, economic crime, and financial stability. We also need clarity over areas including taxation and legal classification of these assets.

• • And as other countries around the world are moving quickly to develop clear regulatory frameworks for cryptocurrency and digital assets. The UK must move quickly, within the next 12-18 months, to ensure early leadership and not lose out to other countries overseas.

We also identified some potential barriers to the UK realising its vision in our report, for example:

• • The inquiry heard that at present the process for cryptoasset businesses to enter the UK is too burdensome and lengthy, resulting in many businesses ultimately choosing to invest outside of the UK. We need to ensure that regulators have the resources they need to deliver on their responsibilities. 

• • We need a joined up and coordinated approach across all Government Departments and we have said that Government should consider the appointment of a ‘Crypto Tsar’ who could help coordinate across departments to ensure a consistent approach.

• • Another area of concerns for many firms is access to basic financial services. The inquiry heard that UK firms often struggle to secure access to UK banking services and we are urging Government to take urgent steps to ensure that there are clear pathways for firms to access fundamental banking facilities.

Central to all of this will be the need for collaboration and engagement. This is important because when we talk about what the future of crypto regulation might look like it's imperative that we all work together in the same direction to ensure that we get this right. That means Government, central banks, regulators, policymakers and industry all working together with the same goal of developing a regulatory framework that is fit for purpose.

I am delighted with the impact that the APPG has already had in such a short space of time, and less than 18 months since it was first formed here in Westminster it is already being recognised as one of the leading groups in Parliament for MPs and Lords who want to learn more about the industry.

The APPG, and we as policymakers, rely on your sharing your views and expertise, to help inform the debate about the future regulation of the sector, and to ensure that we deliver regulation and policy that works.

So I want to close by thanking you all again for joining us here today, and for your contributions to our inquiry. 

We hope you are pleased with the report, and please continue to engage with the APPG as we continue our work in this space.

Thank you.'

    

 

    

Report in Summary:
The report makes a total of 53 recommendations to Government on a number of key areas including the UK’s approach to regulation of cryptocurrency; the role and current approach of UK regulators; the potential offered by Central Bank Digital Currencies - ‘a Digital Pound’; and risks faced in terms of Consumer Protection and Economic Crime.

• The report said that cryptocurrency is here to stay and needs to be regulated to protect consumers; adding that the UK is well placed to harness the opportunities from the growth of the sector but without comprehensive regulation there are considerable risks particularly in terms of consumer protection, economic crime, and financial stability.
• The report said that as other countries around the world are moving quickly to develop clear regulatory frameworks for cryptocurrency and digital assets, the UK must move quickly within the next 12-18 months to ensure early leadership within this sector.
• The report also said that cryptocurrency and digital assets are best regulated within existing and new financial services regulations, which has a track record in mitigating risks to consumers and investors.
• Lisa Cameron MP said “I like people to pay tax when they make gains in the U.K. and that can only be achieved under the financial services regulation rather than gambling” as winnings from gambling are not taxed, whereas gains on investments usually are. She added that financial services regulations offer the best and most robust protections for consumers.

You can download the report here

Download the summary report here

Full inquiry launch press release here

 

APPG Publishes Inquiry Report on Crypto and Digital Assets

5 June, 2023

Chair of the Crypto and Digital Assets APPG, Lisa Cameron responds to Treasury Select Committee Report Summary on Regulating Crypto

17 May, 2023

Chair of the Crypto and Digital Assets APPG, Lisa Cameron asks question in Parliament about the job potential of crypto and blockchain technologies

3 May, 2023

Chair of the Crypto and Digital Assets APPG, welcomes the HMT open consultation on the taxation of DeFi involving the lending and staking of cryptoassets

2 May, 2023

Lisa Cameron MP, Chair of the Crypto and Digital Assets APPG, welcomed the HM Treasury consultation, saying:

Chair of the Crypto and Digital Assets APPG, welcomes the EU’s Markets in Cryptoassets (MiCA) regulation and calls on Government to keep pace with international crypto regulation

25 April, 2023

In a statement, Lisa Cameron MP said:

'Recent high profile events like the collapse of crypto exchange FTX have accelerated the global drive for crypto regulation.The approval of the EU’s Markets in Cryptoassets (MiCA) regulation is a significant positive step towards providing much needed regulatory clarity in relation to crypto and digital assets both for businesses and consumers, and paves the way for investment and innovation in the sector, as well as potentially increasing institutional confidence in the banking sector and others when it comes to dealing with crypto.The UK Government has set out its own vision for the UK to be a global hub for crypto and is moving forward with steps to bring forward its own regulations through the Government’s Financial Services and Markets Bill and the UK Treasury’s ongoing consultation on regulation of the wider crypto and digital asset sector.The UK should carefully consider the steps being taken in the EU and elsewhere to regulate the crypto industry, which can provide a useful blueprint for the UK’s own approach to regulation.The UK is well placed to build on its existing strengths as a global leader in financial services and fintech, and has a real opportunity post Brexit to establish its own unique approach for regulation of the crypto sector. The UK Government should ensure it moves at pace to provide regulatory clarity for businesses and consumers and not be left behind other countries.'

Crypto and Digital Assets APPG AGM: Minutes & Income and Expenditure Statement

6 March, 2023

The Crypto and Digital Assets APPG held its AGM on 7th February 2023, where the Chair of the APPG, Lisa Cameron MP, approved arrangements for the APPG including the election of the group's officers and an Income and Expenditure Statement.

Minutes of the AGM can be viewed here

The group's Income and Expenditure Statement can be viewed here

Chair of the Crypto and Digital Assets APPG welcomes the Government announcement to bring forward proposals for the crypto and digital asset industry.

2 February, 2023

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

'As Chair of the Crypto and Digital Assets APPG in Westminster, I welcome the Government’s announcement to bring forward robust proposals for regulation of the crypto and digital asset industry.The UK has a strong track record as a leader in financial services and fintech, and there is huge potential for the UK in terms of economic growth, jobs and skills from a well regulated and responsible crypto sector.It is vital that Government ensures that consumer protection remains at the heart of any future regulatory framework for the UK crypto sector. Greater regulatory clarity for consumers and businesses will be key to making the Government’s vision for crypto a reality.I welcome the Government’s commitment to industry engagement in taking these proposals forward. Public and private sector collaboration will be key to ensuring that we develop a regulatory framework that is fit for purpose.I want to see the UK leading the way in crypto regulation and to shape its own regulatory approach to cryptoassets, which attracts inward investment, supports growth in the sector and champions high regulatory standards.'

Chair of the Crypto and Digital Assets APPG Calls on Government for Urgent and Clear Crypto Regulation

17 November, 2022

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

“The events surrounding crypto exchange FTX are concerning and highlight the need for urgent and clear regulation of the crypto sector to ensure that consumers are protected and to guarantee the responsible and proper use of customer funds.

I urge Government and regulators to look carefully at what has happened in this particular case and to consider what further regulation is required to help prevent this happening again in the future.

With more and more people using crypto it's more important than ever that we learn the lessons from this case and previous market failures to protect against harm to investors and consumers.

We want to see a responsible and well regulated crypto sector which provides clear rules for operators, sets high standards in terms of consumer protection and promotes good corporate governance across the sector.”

Chair of the Crypto and Digital Assets APPG Calls for Clarity in Terms of UK Crypto Policy

31 October, 2022

Chair of the APPG, Lisa Cameron MP, speaks to the Times welcoming recent industry efforts to address the environmental impact of crypto and calls on Government, regulators and the cryptoasset industry to work together on ongoing sustainability issues.

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

“It's clear that some cryptoassets can have a significant environmental impact. It's important that we look at ways that Government, regulators and the cryptoasset industry can work together to move towards a more sustainable industry as Government seeks to make the UK the global home of crypto.

Industry efforts like the recent Ethereum ‘Merge’ are a welcome and positive step in the right direction and I am pleased to see some crypto operators taking proactive steps on sustainability.

Government has said that this is something it will look at as part of a wider review of cryptoasset regulation later this year. It is important that policymakers build a strong evidence base to properly understand the scale and impact of these challenges when making decisions over future regulation of the sector.”

You can read the full article (£) here

Chair of the Crypto and Digital Assets APPG Calls for Clarity in Terms of UK Crypto Policy

26 October, 2022

Lisa Cameron MP, Chair of the Crypto and Digital Assets APPG, said: “Given the level of uncertainty in Westminster over recent months it is vitally important that Government now provides certainty for businesses and the country. As Chancellor, Rishi Sunak set out the Government’s ambition for the UK to become a global hub for crypto investment. UK crypto and digital asset firms desperately need clarity over the UK’s approach to crypto policy and for Government to deliver on its vision for the UK crypto sector.Crypto businesses want regulation which provides regulatory clarity and business certainty. We need a proportionate approach to regulation that balances risk, ensures high levels of consumer protection and that doesn't hamper growth and innovation in the sector.It is important that Government does not take its eye off the ball and delivers on the commitments it has made in terms of crypto policy.”

Lisa Cameron MP: Crypto is here to stay

21 September, 2022

Chair of the Crypto and Digital Assets APPG speaks to Justin Cash at Financial News about the work of the APPG in Westminster and the importance of crypto regulation in the UK

Lisa said the APPG is an important forum for policymakers and also spoke about the importance of looking overseas at the approaches towards regulation being adopted by other jurisdictions. Arguing the UK needs to take the top regulatory ideas from areas such as the EU and the US to create a bespoke regime based on best practice. Lisa also spoke about the practical use of blockchain technology including the potential for faster payments, less bureaucracy and greater financial inclusion. She is also interested in how blockchain can support foreign aid to trace exactly where it has gone.

You can read the full Financial News article (£) here

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, Chair of the Crypto and Digital Assets APPG, publishes joint letter with Adam Afriyie MP, Chair of the Fintech APPG to John Glen MP, Economic Secretary to The Treasury

15 June, 2022

In this joint letter, the Fintech APPG & Crypto and Digital Assets APPG call for urgent action to protect the UK’s position as a leading financial hub and remove the roadblocks that will prevent the UK becoming a beacon for responsible cryptoasset businesses.
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.”

You can view the exclusive FT article covering the launch of the Crypto & Digital Assets APPG here.