The UK parliament has set up an independent group of lawmakers to regulate the crypto sector in the country. Along with the Parliament, the Crypto and Digital Assets Group has members from the House of Lords. Although the group is formed to regulate the industry, it is also expected to frame policies to support the innovation.
MP Lisa Cameron from the Scottish National Party will be chairing the group. “We are at a crucial time for the sector as global policymakers are also now reviewing their approach to crypto and how it should be regulated,” she stated. The other members in the group famously include Ed Vaizey, the UK Digital Economy Minister, and Tory MP Harriett Baldwin, formerly associated with JPMorgan.
CryptoUK, the digital asset trade association, has backed the Westminster All Party Parliamentary Group saying it will offer a forum for parliamentarians to be able to act on the digital asset industries. Most importantly, it will discuss the regulations and crypto policies of the industry.
The areas the group will cater to:
- Consumer protection from scams and fraudulence
- Financial education of the industry
- Aiming inclusive growth
- UK’s role as a leader
What to expect:
Since the digital asset economy is new, it is comparatively unorganized, posing many challenges in the industry. Industry experts project that the group will address the key challenges in the industry such as consumer protection and curbing increasing fraudulent cases. Therefore, it will frame policies that support the growth and innovation of the crypto space.
Additionally, the group is likely to give primary importance to the money laundering registration regime for crypto companies by setting an examination with the Financial Conduct Authority. It will also conclude on the end result of crypto advertising and stablecoins policy consultations.
According to CryptoUK, the group will firstly analyze the state of the UK crypto sector. With this, the group intends to understand concerns raised on financial crimes in this digital economy. Also, it will study the international regulatory policies and external digital asset economies.
In the second stage, the group will frame the guidelines and policies to regulate the place. This will establish the role of the government in the digital assets industry.
The later stage will involve the group staying upgraded and keeping pace with the innovations and advancements affairs in the industry. Here, the government will also consider the increased adoption of digital currencies by investors.
With the UK government’s move to set up the group, there will be better clarity in the industry regarding crypto exchanges and trading. Although it will offer financial stability in the market, the move will also introduce regulations that will limit the freedom of crypto exchanges. Most importantly, it will erode the previously enjoyed privacy in the crypto space.
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