UK parliament launches new crypto group, will focus on consumer protections

By Daniel Lanyon on Monday 10 January 2022

Alternative LendingDigital BankingSavings and Investment

A new All Party Parliamentary Group (APPG) for Crypto and Digital Assets Group has been launched by a cross-party group of MPs and Lords in the UK Parliament.

UK parliament launches new crypto group, will focus on consumer protections
Image source: Lisa Cameron/UK Parliament

Despite the recent sell-off, crypto has well and truly arrived: it now has its own group in the UK parliament. 

A cross-party group of MPs and Lords in the UK Parliament have formed a new All Party Parliamentary Group (APPG) for the UK Crypto and Digital Assets sector. 

APPGs are semi-official bodies allowing industries a direct link with parliamentarians, the UK’s lawmakers, policymakers and political leaders. While alternative finance and fintech have had their respective APPGs for over five years crypto has only just made it in 2022.

The group intends to investigate the state of the UK crypto sector and recent concerns raised around financial crime and advertising. It will consider the growth of crypto over recent years and the need for regulators and the Government to keep pace with the rapid advancements and increased adoption of crypto by consumers. 

The group will look at international examples from other jurisdictions that have already taken steps to regulate the crypto sector. 

Lisa Cameron, an MP for the Scottish National Party is Chair of the Crypto and Digital Assets APPG. 

She says the UK Crypto sector is seeing increased interest from both consumers and regulators as the number of people who now own some form of cryptocurrency or digital asset has grown in recent years. 

“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. Looking at how we can best protect consumers must be a top priority for Government and regulators.” 

Consumer protection will be a key priority for the new group owing to the continued strong adoption of crypto in tandem with awareness of risks for consumers remaining low. 

“There must be clear rules for the advertising of cryptoassets in the UK so customers are protected and to help UK crypto firms to stay within the rules. We also want to see clarity of regulation particularly in terms of money laundering protections,” Cameron added. 

“We will be looking at the work of the FCA in registering UK crypto firms so that customers are clear about which firms are regulated and which aren't but which also gives UK firms business certainty,” she said.

In addition to Cameron the other members of the group are:

  • Martin Docherty-Hughes MP (SNP)

  • Harriett Baldwin MP (Conservative)

  • Lord Taylor of Warwick (Non-Affiliated)

  • Alexander Stafford MP (Conservative)

  • Lord McNicol of West Kilbride (Labour)

  • Philip Davies (Conservative)

  • MP Simon Fell MP (Conservative)

  • Lord Cromwell (Crossbench) 

  • Lord Vaizey of Didcot (Conservative)

  • Bell Ribeiro-Addy MP (Labour)



 

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