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UK Parliamentary Group launches inquiry for further regulation of growing crypto sector

As the UK continues to establish a clear cryptocurrency regulatory outlook, several entities have emerged to contribute to the creation of policies to govern the sector. In particular, the All Party Parliamentary Group (APPG) has released a study that seeks to examine the need for further regulation of the UK crypto space.

In a press statement issued on August 4, APPG said the study was based on several factors, including the existing UK approach to crypto regulation and government initiatives to establish the region as a global hub for digital assets. said it intended to cover

In addition, the hearing will also consider the UK regulator’s role and current approach to digital asset regulation, Central Bank Digital Currencies (CBDC) and the risks associated with cryptocurrencies.

As part of the investigation, APPG will solicit input from governments including cryptocurrency operators, regulators, industry experts and bodies such as the Bank of England, the Financial Conduct Authority and the Advertising Standards Authority.

Rising popularity of crypto in the UK

According to Lisa Cameron, chair of the group, the growth of cryptocurrencies in the country has motivated the investigation. For example, research shows that as of July 2022, her 10% of UK adults own or have held cryptocurrency.

“The UK crypto sector has seen increased interest from consumers and regulators in recent years as the number of people owning some form of cryptocurrency or digital assets has increased. We are coming at a critical time for the sector as cryptocurrencies reassess their approach to crypto and how it should be regulated.

Stakeholder support for inquiries

In particular, players in the cryptocurrency sector under CryptoUK have welcomed the investigation, claiming it will bring sanity to the industry.

“The UK crypto sector recognizes the importance of a well-regulated industry in the UK and supports regulation that provides business certainty and promotes a healthy and robust market. “We would like to see a proportional approach to regulation that balances the need to protect consumers and the need to support innovation and growth,” said Ian Taylor, Executive Director of CryptoUK. increase.

APPG will share the study’s recommendations with the government for consideration. Interested stakeholders must submit their comments by September 5.

As part of proposing legislation to govern the crypto sector, the UK Law Commission has also issued an advisory paper focused on determining crypto ownership to protect the rights of users. The Commission has proposed extending UK property law to recognize and store digital assets.

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