MPs will be scrutinising the Treasury’s plans to make UK as the “global home of crypto” as part of a new investigation into the larger digital assets and crypto industry that was announced today.
The Crypto and Digital Assets All Party Parliamentary Group (APPG) which is headed by Scottish National Party MP Lisa Cameron The group announced its inquiry on Tuesday and said it will look into a variety of issues, including the regulation of the sector and plans made by the Treasury to make the UK the “global home of crypto investment.”
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In April the previous City Minister John Glen revealed the Treasury’s plans to make the UK an international hub for crypto companies to open a shop and plans to incorporate stablecoins to the UK’s regulation framework as a payment instrument.
The market has since plunged in a so-called “crypto winter’ that saw nearly $2tn of dollars erased off of its total value, and even coins such as Terra Luna – which was previously one of the 10 most popular currencies – having lost almost all in value.
Cameron stated that today’s inquiry would now focus on the legal framework surrounding crypto and crypto at “a crucial time for the sector” with the rising consumer and regulatory attention.
The most prestigious financial watchdog in the United Kingdom, is the Financial Conduct Authority has been intensifying its examination of the crypto industry and has been tightening the rules regarding advertising to stop crypto firms from offering ad-hoc returns and risky products to investors.
Central Bank Digital Currencies are expected to also be in the spotlight when the inquiry investigates the role played by the Bank of England in the larger cryptocurrency ecosystem. CBDCs have been unable to gain approval from politicians until now. The House of Lords report in January describing them as an “solution in search of a problem”.
