Why this MP is pushing for crypto adoption in the UK
Mon Jun 12 2023
UK's Regulatory Approach towards Crypto
- Dr. Lisa Cameron, member of Parliament and Chair of the UK's crypto and digital assets group, and Ian Taylor of Crypto UK discuss the UK's regulatory approach towards crypto.
- Dr. Cameron's interest in advocating for crypto-related policy was sparked by a constituent who fell victim to a rug pull scam.
- Millions of people in the UK are using cryptocurrency, making it a mainstream issue that needs to be addressed in Parliament.
- The all-party parliamentary group and Crypto UK collaborate to provide guidance and support for government officials in the crypto space.
- The focus is on evidence-based practice internationally, education and awareness raising, and an inquiry report throughout the year.
Importance of Regulation
- Regulation is crucial for providing confidence for consumers and investors, as well as attracting investment in the sector.
- The All-Party Parliamentary Group supports financial services regulation over gambling regulation for consumer protection, tax revenue, and international best practices.
- Lisa Cameron meets with policymakers and regulators globally to ensure proportional regulation of stablecoins for consumer protection.
- The APPG report may differ from the Treasury Select Committee report in some aspects.
UK's Position in the Crypto Industry
- The UK aims to be a crypto technology center, and engagement between the government and the crypto community has facilitated this policy.
- The UK economy heavily relies on professional financial services, making it important to be at the forefront of the cryptocurrency industry.
- In the US, there is a debate on whether cryptocurrencies are securities or not, while in the UK, the debate is whether they are securities or gambling instruments.
Addressing Consumer Harm and Education
- The Treasury Select Committee is examining consumer harm in the crypto sector, particularly related to financial loss and lack of education.
- More financial education, including digital financial education, is needed for the population, along with appropriate safeguards.
- Legislation and industry responsibility should address harms associated with the sector.
- Paying taxes on crypto gains supports important services like healthcare.
Proposed Regulatory Framework
- The UK government is proposing an overarching regulatory framework for the crypto industry to protect against consumer harm, market abuse, and asset custody.
- New bespoke frameworks such as Defired, Lended, and Staking are being proposed to allow the industry to grow and develop with increased adoption while mitigating risks.
- Corporate governance is important for new innovative sectors alongside their activities, and it should be stringent within the system.
- The UK wants to harness leadership and potential in FinTech as it is essential for its economy.
Importance of Collaboration and Evidence-Based Approach
- Disagreements and debates are healthy and important, but an evidence-based approach is necessary.
- The Parliament needs to work together on cross-party issues and harness leadership potential in various sectors.
- The UK aims to put forward a regulatory framework for crypto within the next 12 months through the legislative process.
- This window of opportunity is crucial for attracting business, investment, and providing consumer protection.
- Advocacy work plays a significant role in engaging with government, regulators, and press to showcase real use cases for crypto.