Commons Sense

House of Commons · Westminster Hall

Cryptocurrency Regulation

13 June 2023 · 4 other contributors · 3,621 words

Opened by Lisa Cameron SNP East Kilbride, Strathaven and Lesmahagow

Responding minister: Andrew Griffith

EconomyScience & 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 about risks posed by cryptocurrencies include consumer protection, economic crime, and financial stability.
  • The APPG report notes that only 41 firms are approved to operate in the UK, with many facing delays or rejections.
  • The Government aims for UK to be an open, well-regulated, and technologically advanced society in cryptocurrency regulation.

Key requests to Government

I ask the Government to ensure that legitimate and responsible firms can set up and scale up here by providing clear pathways for access to banking facilities. I also urge the Government to consider using their powers to facilitate dialogue between the banking sector and digital assets firms, ensuring a regulatory framework within financial services.

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 potential risks posed by cryptocurrencies, particularly regarding consumer protection, economic crime, and financial stability. The APPG's report highlights that only 41 firms have been approved to operate in the UK and many businesses face lengthy delays or rejection of their applications without clear explanations. Research shows that cryptocurrency ownership has almost doubled in the last year, with nearly one in ten people owning cryptocurrency. There is a need for proper regulation to protect consumers and support the industry's growth.

Other contributors (4)
  • Alun Cairns Con Newton Abbot

    Alun Cairns congratulated the hon. Lady on her work with the crypto and digital assets all-party parliamentary group and highlighted that a clear direction from Government allowed the UK to become the world's leading fintech centre in the past, suggesting this model could be replicated for cryptocurrency regulation. Alun Cairns congratulates the Minister on pressing ahead with the digital pound and asks if all regulators have the capacity to deliver the vision set out by the Government. He expresses concern about crypto companies finding it challenging to open bank accounts.

  • Jim Shannon DUP Strangford

    Jim Shannon commended the hon. Lady for securing the debate and discussed a tech firm, Colu, which had developed a potential new cryptocurrency for Belfast City Council in 2019. He questioned whether regulation must be UK-wide to ensure safe crypto practices.

  • Martin Docherty Lab Dunfermline and West Fife

    Martin Docherty stated that fraud should be regulated first before introducing other forms of regulation in the crypto sector, arguing that there is a significant risk associated with crypto assets. Martin Docherty challenges the Minister on regulation, noting that existing levers are available for technology that has been around for 30 years. He asks when the Government will implement existing regulations to address crypto fraud.

  • Mike Freer Con Barnet and Camden

    I highlighted the importance of the UK becoming a global hub for cryptocurrency investment and welcomed the Government's vision. I mentioned developments in Scotland and Northern Ireland, emphasizing the need for collaboration across the United Kingdom.

Government Response

Andrew Griffith

It is a pleasure to serve under the chairmanship of Mrs Carolyn Harris. I congratulate Dr Cameron on securing this debate and welcome Minister Bornyakov and his team from the Public Gallery. The Government's goal for the UK is to be an open, well-regulated, and technologically advanced society in cryptocurrency regulation. We aim to lean into the space while balancing risks and consumer harms with effective, clear, proportionate, and timely regulations. Acknowledging the concerns about bank account availability, I undertake to keep a close eye on this issue but emphasise that it is primarily a commercial decision for organisations. The Government has recently passed secondary legislation covering cryptoasset financial promotions which will be implemented later this year by regulators. There are no plans for a crypto tsar, but I champion the sector in my role as Economic Secretary. We want to show early leadership within an internationally competitive sector and encourage industry engagement to promote growth. Andreessen Horowitz's decision to open its first international office outside Silicon Valley in the UK is testament to our ambition.

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