The All Party Parliamentary Group (APPG) for Crypto & Digital Assets has today released a report on the potential opportunities and challenges of the UK government’s vision to become a global crypto and digital asset hub.
A total of 53 recommendations have been outlined, including the UK’s approach to crypto regulation, CBDCs, consumer protection and economic crime.
The 52-page report jointly involved Members of Parliament and the House of Lords.
Dr Lisa Cameron MP, chair of the APPG, said: “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.”
Some of the key highlights in the report reveal:
The need for regulation
The report highlights the need for regulation to protect consumers and ensure investment and economic growth. The rapid growth of cryptocurrency and digital assets in recent years suggests that the sector is here to stay. Therefore, it needs to be regulated to protect consumers and ensure guardrails for investment and economic growth.
Potential opportunities in the UK
The cryptocurrency and digital asset industry presents a number of potential opportunities in the UK. These include efficiencies and innovation in financial services and payments, economic growth, contribution to careers of the future, research and collaboration opportunities, and greater financial inclusion for those who are currently marginalised.
Recommendations for the UK government
The report concludes with a series of recommendations for the UK government. These include building on its existing strengths as a leader in financial services and a hub for fintech investment, creating the right conditions for cryptocurrency and digital asset businesses to set up and scale up in the country, and developing a comprehensive regulatory framework that provides clarity and protects consumers.
The report also recommends the appointment of a ‘Crypto Tsar’ to ensure a consistent approach across departments.
Exploring the potential of a digital pound
The report welcomes the steps taken by the government and the Bank of England to explore the potential of a digital pound. It suggests that any decision to introduce a digital pound will require significant trust among the public and consumers.
Consumer protection and economic crime
The report highlights the need for high standards of consumer protection and improved public digital finance education. It also calls for greater resources for authorities and regulators to deliver on their new cryptocurrency and digital asset responsibilities.
The UK government’s vision to become a global hub for cryptocurrency and digital assets is ambitious and forward-thinking. With the right regulatory framework and consumer protection measures in place, the UK could indeed become a leading player in the global cryptocurrency and digital asset market.
