UK Parliamentary Group Calls for Creation of ‘Crypto Tsar’ in Report on Cryptocurrency Regulation

By 0xGorki 06/5/23 4:32 PM

The Crypto and Digital Assets All Party Parliamentary Group has published a comprehensive report offering 53 recommendations to the UK government. The report not only aims to establish a consistent approach to crypto regulation but also emphasizes the need for the UK to become a global cryptocurrency hub.

One of the key proposals put forward by the parliamentary group is the creation of a new role known as the ‘Crypto Tsar.’ This individual would be responsible for coordinating efforts across various government departments to ensure effective regulation of cryptocurrencies. By establishing this position, the group hopes to foster a coherent and forward-thinking approach to crypto regulation in the country.

Famous Tower Bridge with flag of England in London, UK

While acknowledging that cryptocurrencies do not currently pose a systemic risk, the report urges the government to carefully evaluate potential risks as the industry continues to grow. To prevent the UK from falling behind other nations in this sector, the parliamentary group advises the government to provide legal and regulatory clarity within the next 12 to 18 months. Striking a balance between consumer protection and innovation is deemed crucial for fostering a thriving crypto industry.

The report also highlights a pressing issue faced by crypto firms in the UK—difficulty in accessing banking services. The parliamentary group urges the government to find a solution to this problem promptly, as it hinders the growth and development of the sector. Additionally, the report emphasizes the need for stablecoins, a type of cryptocurrency tied to a stable asset, to be backed by fiat currencies and other high-quality assets to gain trust and credibility as a new payment system.

Addressing the rising concerns over scams and criminal activities associated with cryptocurrencies, the report emphasizes the importance of government agility and adaptability to combat evolving techniques employed by criminals. Law enforcement agencies must be adequately equipped with resources to effectively tackle crypto-related crimes and ensure the safety and security of the public.

However, the parliamentary group also emphasizes the need for a coordinated effort involving industry players, regulators, law enforcement, and the government to raise awareness among consumers. To effectively combat scams, it is crucial to educate the public about potential risks and encourage responsible participation in the crypto space.

With the publication of this report, the Crypto and Digital Assets All Party Parliamentary Group has provided a comprehensive roadmap for the UK government to regulate the cryptocurrency industry. By taking these recommendations into account, the UK aims to position itself as a global leader in the crypto sector while maintaining a balance between innovation, consumer protection, and effective regulation.

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