Last year August, the APPG (All Party Parliament Group) for Crypto and Digital Assets inquired into the Crypto Regulation.
During their consultation, the APPG collected insights from many different stakeholders.
These involve the general public, the regulators, and the cryptocurrency industry members.
Following the inquiry, the APPG on Monday published a report that calls attention to the need for “immediate” regulation of the crypto market.
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Inquiry Findings
The investigations of the APPG disclosed that due to the fast growth of digital assets in recent times, crypto “has come to stay.”
Therefore, if the United Kingdom wants to be at the top of the market, it should act fast on the crypto rules to match up to other jurisdictions already building rules.
According to Dr. Lisa Cameron MP, Crypto, and Digital Assets APPG Chair, “the emergence of this APPG report is crucial.
This means the United Kingdom might want to retain its leadership in the industry.
Also, to safeguard customers given the increasing development of crypto and digital assets”.
Furthermore, the report counseled that with no thorough regulation, cryptocurrencies display huge risks, especially regarding consumer protection, financial stability, and economic crime.
The All Party Parliament Group’s inquiry disclosed that it is best to regulate digital assets and cryptocurrencies within the existing and latest financial services regulations.
Additionally, APPG laid warnings of “notable concerns” surrounding whether the regulators presently have the capacity, technical expertise, and resources needed to deliver on their duties.
UK Government Proposal
The United Kingdom Authorities Consultation on Cryptocurrency Regulation Closes with a proposal.
According to Prime Minister Rishi Sunak’s Administration, the proposal said to add crypto under the Existing Financial Services Regulations.
In collaboration with APPG, CryptoUK urges certain crypto regulations in the 1-year timeframe in compliance with the government’s target for implementation.
The parliament deliberates on bills to improve the authority of the lawmakers within the crypto sector and also allows law enforcement to freeze and seize cryptocurrency.
According to the new regulations, cryptocurrency companies now have to register with the FCA (Financial Conduct Authority) for them to operate in the country.
