Crypto Focused Parliamentary Group Asked for Regulations in the U.K. 

The United Kingdom is among the countries aspiring to become a crypto hub, and is also keen towards the development of their central bank digital currency (CBDC), the so-called “digital pound.” Though their plan of an immediate launch of digital currency is not down the road, the preparations are continuing. Recently, a report was released by a crypto focused parliamentary group highlighting the need for crypto regulations and CBDC development, such that it does not suppress the growth of the burgeoning asset class in the region. 

The British Crypto and Digital Assets All Party Parliamentary Group (APPG), released a report on Monday, June 5. In the report, it noted that though the CBDCs hold multiple potential benefits, there is still room for reconciliation. Furthermore, it stated the British government’s need to look for potential risks inherent to the development of the digital pound and resolve them prior to its launch. In order to maintain the “financial stability, privacy and security risks,” the measures are to be taken. 

Additionally, it was also noted the measures are to be taken in such a way that the innovation in the private sector does not get hampered or affected following the introduction of digital currency. 

The report, “Realising Government’s Vision for the UK to Become a Global Hub for Cryptocurrency & Fintech Innovation,” shared the insights after starting its inquiry in August 2022. Meanwhile, it also conducted several public evidence sessions in parliament. 

The discussions were a part of an inquiry of APPG resulting in the 52-pages long report. It included insights received from industry participants including regulations, experts, operators and in general public, etc., and reportedly aimed to gather all the possible perceptions needed to create the best possible crypto regulations. 

Being independent and cross party groups, APPG formed after including the Members of Parliament (MPs) and Members of the House of Lords. The committee works within the UK Parliament to assist the lawmakers in policy making while providing recommendations and sector insights. 

The All Party Parliamentary Group for Crypto and Digital Assets Group, under the leadership of MP Dr. Lisa Cameron, was initiated while keeping the discussion’s goal of examining cryptocurrencies related issues. 
Overall, APPG’s report directs towards the UK’s plans of becoming a global hub for crypto asset technology. The proposal was first pushed by the former Chancellor and now the Prime Minister of England, Rishi Sunak in 2022. At the time of announcement, Sunak asserted the strategy by design would ensure the private entities to make investments, work towards innovation, and scale up the operations within the sector.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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