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The Scoop

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.