UK Treasury Committee Launches Inquiry into the Role of Crypto Assets and the Associated Risks

  • Richard Marley
  • July 15, 2022
  • 2 minutes read
  • 644

The Treasury Committee of the UK’s House of Commons has urged the public to submit their take and evidence on the role of crypto, its associated risks, and opportunities.

In a notice released on Tuesday 13 July, the committee said it had opened an inquiry for the citizens to write in about the role of crypto assets in the United Kingdom. 

The Treasury Committee said it would be exploring how the UK government, the Financial Conduct Authority (FCA), and the Bank of England can balance regulation “to provide adequate protection for consumers and businesses without stifling innovation” as well how cryptocurrencies and distributed ledger technology could impact individuals, businesses and financial institutions.

The British public has until Sept. 12 to submit evidence, which the committee may use in its report to Parliament. 

Among the proffered questions were the opportunities and risks of a central bank digital currency from the Bank of England, what the U.K. government can learn from regulators and lawmakers addressing crypto in other countries, and the “environmental and resource intensity of using crypto-asset technology.”

“What impact could the use of crypto-assets have on social inclusion?” asked the committee. 

“Are the government and regulators suitably equipped to grasp the opportunities presented by crypto-assets, whilst at the same time mitigating against the risks? 

What opportunities and risks could the use of crypto-assets — including non-fungible tokens — pose for individuals, the economy and the workings of both the public and private sectors?”

The inquiry followed the government’s July 5 request that the public weighed in on taxation related to decentralized finance through crypto loans and staking. 

On Tuesday, deputy governor for financial stability at the Bank of England Jon Cunliffe also called for regulators to ​​“get on with the job” of incorporating crypto and blockchain into existing frameworks.

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