Members of Parliament have proposed the implementation of cryptoasset regulation by 2025, the establishment of dedicated cryptocurrency units, and the appointment of a “crypto tsar” to position the UK as a frontrunner in the industry.
The All Party Parliamentary Group (APPG) for Crypto and Digital Assets Group has released a thorough report on the necessity for regulation in the sector.
The cross-party group, led by Dr. Lisa Cameron of the SNP, stated that the growing popularity and use of cryptoassets, such as Bitcoin, emphasize the importance of regulatory assistance.
The report observed that digital assets are currently regulated in other regions, including the European Union. To establish itself as a frontrunner, the UK must enact significant regulation in the next 12 to 18 months.
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“Following the government’s announcement of its vision for the UK to become a global hub for cryptocurrency, the APPG launched our inquiry to help identify the issues that policymakers will need to consider moving forward,” said Cameron.
“Given the rapid growth of cryptocurrency and digital assets, the timing of this report is vital to protect consumers whilst ensuring the UK’s leadership in this sector can be realised.”
The report suggested that current regulators may lack necessary resources, capacity, and technical expertise to handle cryptocurrencies, and recommended the establishment of dedicated crypto units by relevant groups such as the Financial Conduct Authority (FCA).
The group proposed a coordinated approach towards regulating crypto across all relevant departments, with the possibility of assigning a newly established “crypto tsar” for oversight.