A parliamentary group in the United Kingdom (UK) says that the country can emerge as a leader in the digital asset space if it moves quickly.
The bipartisan parliamentary group known as Crypto and Digital Assets All Party Parliamentary Group (APPG) says in a new report that the UK has between a year and a year and a half to create clear crypto regulations in order to take a leadership position in the global digital asset market.
APPG warns that if the UK fails to do so other countries who have already created clear crypto regulations will reap most of the benefits from the industry.
“A number of countries around the world have moved quickly to develop clear regulatory frameworks and to provide necessary clarity attracting companies to their jurisdictions. The UK must move within a finite window of opportunity within the next 12-18 months to ensure early leadership within this sector.”
The report recommends that the UK creates a new position to lead the rule-making process for digital assets.
“Government should consider the appointment of a ‘Crypto Tsar’ who can help coordinate across departments to ensure a consistent approach.”
The report says that the growth rate of crypto indicates digital assets are not going away and makes 53 recommendations for how the UK should approach regulations.
Says the report,
“The rapid growth of cryptocurrency and digital assets in recent years and the increased interest and adoption amongst consumers and investors, suggests that the sector is here to stay and that it therefore needs to be regulated to protect consumers and to ensure guardrails for investment and economic growth.”
According to the report, digital assets can bring many benefits but there is also a need for regulations that focus on such things as consumer protections and economic crimes.
“The cryptocurrency and digital assets industry presents a number of potential opportunities in the UK including efficiencies and innovation in financial services and payments, economic growth, contribution to careers of the future, research and collaboration opportunities and greater financial inclusion for those who are currently marginalized…
The growth of the cryptocurrency and digital asset sector, without comprehensive regulation, also presents considerable risks particularly in terms of consumer protection, economic crime, and financial stability.”
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