UK Treasury Committee opens inquiry into crypto industry

by · July 14, 2022

The Treasury Committee of the UK House of Commons has urged the public to submit evidence related to the role of crypto risks and opportunities.

In a Tuesday report, the committee said it had opened a survey that allows people to write about the role of cryptocurrencies in the UK. The Treasury Committee said it would examine how the UK Government, the Financial Conduct Authority or the FCA and the Bank of England could balance regulation “to provide adequate protection for consumers and businesses without stifling innovation” and how cryptocurrencies and distributed ledger technology could affect individuals. , companies and financial institutions.

The British public has until September 12 to submit evidence, which the committee can use in its report to parliament. Among the questions asked were the possibilities and risks of a central bank’s digital currency from the Bank of England, what the UK government can learn from regulators and legislators dealing with crypto in other countries, and “the environmental and resource intensity of using crypto-asset technology.”

“What impact can the use of cryptocurrencies have on social inclusion?” asked the committee. “Are the authorities and regulators sufficiently equipped to seize the opportunities offered by cryptocurrencies while reducing the risk? What opportunities and risks can the use of cryptocurrencies – including non-fungible tokens – pose for individuals, the economy and the functioning of both the public and private sectors? ? ยป

The inquiry followed the government’s request on 5 July that the public weigh in on taxation related to decentralized finance through crypto loans and staking. On Tuesday, Bank of England Deputy Governor for Financial Stability Jon Cunliffe also asked regulators to “get on with the job” of incorporating crypto and blockchain into existing frameworks.

Related: Enforcement and adoption: What does the UK’s recent regulatory target for crypto mean?

A scandal surrounding the soon-to-be former Prime Minister Boris Johnson has shaken up the leadership among UK lawmakers and regulators. Chancellor of the Exchequer Rishi Sunak and Secretary of the Economy John Glen withdrew in protest of the Prime Minister’s actions, but were later replaced by Nadhim Zahawi and Richard Fuller respectively. Hong Kong Securities and Futures Commission CEO Ashley Alder will also be the next head of the FCA from January 2023.