Commons Sense

House of Commons · Westminster Hall

Cryptocurrency Regulation

25 January 2023 · 0 other contributors · 3,368 words

Opened by Lisa Cameron SNP East Kilbride, Strathaven and Lesmahagow

Responding minister: Andrew Griffith

Science & Technology

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Lisa Cameron raised concerns about cryptocurrency regulation in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about the lack of discussion on cryptocurrency regulation in the UK Parliament despite widespread ownership of cryptocurrencies by UK citizens.
  • Recent events such as the FTX collapse have highlighted the need for better consumer protection and regulatory clarity from bodies like the FCA.
  • Parliament member requests updates on FCA licensing progress for crypto firms and calls for sustained engagement with the sector to support the development of a UK cryptocurrency hub.

Key requests to Government

I ask the Minister to update on progress in granting licenses to crypto firms since the creation of the licensing regime and provide information on average FCA processing times for crypto registrations. Additionally, I urge the Government to foster sustained engagement with the sector and ensure that everyone is moving ahead towards the vision of a UK cryptocurrency hub.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Lisa Cameron SNP East Kilbride, Strathaven and Lesmahagow

I am concerned about the lack of discussion around cryptocurrency regulation despite millions of people in the UK owning some form of cryptocurrency. Recent events such as the collapse of FTX have highlighted the importance of consumer protection, and there is frustration over delays and a lack of communication from regulators like the Financial Conduct Authority (FCA). I have also heard concerns about international competition, with companies moving to other countries due to these issues.

Government Response

Andrew Griffith

It is a pleasure to serve under your chairmanship, Ms McVey. I congratulate the hon. Member for East Kilbride, Strathaven and Lesmahagow on securing this debate on crypto regulation. The goal is simple: we want the UK to be the home of an open, well regulated and technologically advanced sector. Recent events have highlighted some vulnerabilities in the cryptoassets sector but it is important that we learn from them and use the opportunity to perfect our own regulation. Government policy is to introduce timely, sensible and balanced regulation to allow the safe use of the technology while ensuring a fair share of opportunities. The fintech sector is a great success story for both the City of London and the wider UK economy, attracting more fintech investment than the next 13 European countries combined last year. The Financial Conduct Authority currently has 41 such firms registered in the UK, with regulations around hurdles that firms have to clear. I will hold six roundtables with the sector during calendar year 2023 to encourage broad and deep engagement. A consultation paper on the regulatory approach to cryptoassets will be published very soon, a matter of weeks, not months.

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