The United Kingdom’s parliament has inaugurated a cross-party group, the Crypto and Digital Assets Group, saddled with the responsibility of overseeing the crypto and digital assets sector.
Consisting of Members of Parliament (MPs) and Lords, the group will act as a platform for policymakers, parliamentarians and the UK crypto sector to engage in discourse relating to policy and regulation of the industry.
It will also seek to create regulatory framework that will enhance innovation and development while also looking at ways to address issues like consumer protection and economic crime.
Chair of the new group, Lisa Cameron MP said, “We must ensure that we have an appropriate regulatory framework in the UK which supports innovation and guarantees that the UK remains an attractive destination for innovative firms to set up and grow.
“It is equally vital that we have a clear regime to protect consumers, ensuring they understand the risks, and are protected from the risk of economic harm posed by fraud and scams.”
According to Chainalysis, the blockchain data platform, crypto scams and unregulated companies, cryptocurrency-based crime hit a record high in 2021, with the loss $14 billion, up from $7.8 billion in 2020. While looking at the brighter side, Cryptocurrency transactions totaled $15.8 trillion in 2021, up 567% from 2020, the firm reported.
The Governor of the Bank of England, Andrew Bailey, in November, 2021 cautioned against trading in Crypto citing its popularity as a conduit for illicit activities.
At the time Bailey said, “I’m afraid that the advent of digital means of payment, and in particular crypto assets, … is providing another means of payment for people who want to conduct criminal activity.”
Ian Taylor, executive director of CryptoUK, the digital asset trade association, said, “Our primary focus will be education, education, education. There is no real advocacy and education at that level around crypto assets.”
