In July, Chancellor of the Exchequer Rishi Sunak announced a push to make the UK a ‘crypto hub’ in the context of healthy realism and building the infrastructure to prepare to oversee cryptocurrency issuers and traders in a way that adequately protects investors.

The investigation will focus on a number of areas, including:

  • the UK’s current approach to the regulation of cryptocurrencies and digital assets and the government’s plans to make, the UK, the global home of cryptocurrency investment;
  • The role and current approach of UK regulators, including the Bank of England, FCA and ASA, in relation to cryptocurrencies and digital assets;
  • the potential of central bank digital currencies together with the possible risks in terms of consumer protection and economic crime.

It will wait until 5 September 2022 to receive views from across the industry, including cryptocurrency operators, regulators, industry experts and government.
Contributions must be provided to the APPG in written form by interested parties.

Other activities will follow in the coming months, such as collecting testimonies to hear from those particularly affected, and the group will produce a report with the main recommendations, sharing the findings with the government for evaluation and with Parliament’s Treasury Select Committee, which has also announced an upcoming enquiry into the sector.

The study group will also examine international examples of other jurisdictions that have already taken steps to regulate the cryptocurrency sector.

Thus, the government’s repeatedly expressed desire to make the UK a global hub for cryptocurrency investment is being followed up, and it is being done with the right approach, as dialogue with those who have experience and experience of new technologies on the ground, and striving to adapt, is a concrete step.

Let us also recall what happened recently about ‘unhosted wallets’ with the UK government’s remarkable openness to the sector, found in the exclusion of crypto transactions from traceability, in contrast to the new anti-money laundering rules set by the European Union.