In a new inquiry into the wider sector of digital assets launched today, MPs will be looking at the Treasury's plans to make the UK the global home of cryptocurrencies.
The inquiry will look into a number of areas including the regulation of space and plans announced by the Treasury to make the UK the global home of criptocurrency investments, and is chaired by the Scottish National Party MP Lisa Cameron. In April of this year, Treasury Minister John Glen revealed the intention to make the UK a hub for criptocurrencies, along with plans to bring stable coins into the UK's regulatory framework as a payment tool.
The market has been wiped out of its cumulative value and coins like Terra Luna have been one of the ten most valuable currencies which have shedding almost all of their value in a so-called winter.
Cameron said today that the new inquiry would examine the regulatory framework around criptome at a crucial time for the sector due to growing regulatory and consumer interest.
The APPG will investigate the state of the UK's criptocurrency sector and recent concerns raised around financial crime and advertising, as part of its inquiry.
It will consider the growth of criptocurrencies over recent years, the need for regulators and government to keep pace with the rapid advancements in innovation and technology, as well as whether there is enough to be done in terms of consumer protection. The Financial Conduct Authority in the UK has stepped up its scrutiny of the space and tightened rules on advertising in order to stop companies from peddling fantastical returns and dangerous products to investors.
The inquiry looked at the role of the Bank of England in the wider coinocurrencies and the role of the Central Bank Digital Currencies in the wider criptocurrencies. CBDCs have struggled to get political backing so far. With a house of Lords report describing them in January as a solution to a problem, the inquiry is calling for written submissions until September 5th.