The British government should set up a dedicated department for crypto assets ─ Bipartisan parliamentary proposals | coindesk JAPAN | Coindesk Japan

A group of UK MPs have called on the government to quickly introduce regulation of cryptocurrency financial services and appoint a dedicated official to oversee the process.

In a report released on June 5, the Crypto and Digital Assets All Parliamentary Group said that crypto assets are here to stay and regulation is urgent. The bipartisan coalition, which includes members of both houses, made 53 recommendations for regulating crypto assets in the country.

The government, led by Prime Minister Rishi Sunak, recently concluded talks proposing that the UK regulate crypto assets by bringing them within existing financial services regulations. CryptoUK, a lobby group affiliated with the parliamentary group, said in talks that the UK hopes to introduce crypto regulation within a year, and the government has responded that it hopes to achieve this goal.

Congress is already considering bills that would not only help law enforcement seize and freeze crypto assets, but also give lawmakers more power over the crypto sector.

Currently, cryptocurrency companies are required to register with the Financial Conduct Authority (FCA) if they wish to operate in the UK.

“Given the rapid growth of crypto-assets, the timing of this report is crucial to protect consumers while ensuring the UK’s leadership in this area,” said the parliamentary chairman. One Lisa Cameron said in a June 5 press release.

The parliamentary group’s investigation began in August 2022. This was in response to the government’s intention to make the UK a hub for crypto assets announced in April of the same year by Sunak, who was then Finance Minister. As part of our research, we solicited input from the crypto industry, regulators, and the general public.

In their report, MPs made recommendations for the role of government officials and the current approach of regulators such as the Bank of England, the Advertising Standards Authority and the FCA.

“Given the pervasive nature of crypto- and digital-asset regulation, governments should work together and coordinate across all government departments and agencies affected by the growth of crypto- and digital-assets and blockchain technology. We need to secure an approach,” the report said.

Many crypto firms said they “experienced lengthy delays” or had their registration applications rejected by the FCA without a clear explanation as to why, the report notes.

In a report, MPs expressed concern about whether regulators have sufficient resources to meet their responsibilities for crypto assets, recommending that UK regulators create a dedicated department for crypto assets. bottom.

Other recommendations of the report include ensuring that stablecoins are backed by high-quality assets, ideally fiat currencies, so that they can be used as a means of payment; It includes that the impact should be properly investigated by the government.

Lawmakers will create a new, comprehensive tax framework for crypto, addressing issues such as restrictions on UK banks’ interaction with crypto firms, risks to financial stability and crypto-related economic crime. urged the government to address the issue of

The group is also investigating the “potential” of a central bank digital currency that the government is discussing whether to issue.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: UK Lawmakers Call for a Dedicated Government Role to Oversee Crypto Regulation