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UK Government and FCA respond to Treasury Committee’s Crypto-assets report

Source: Treasury Committee

The Treasury Committee publishes Government and Financial Conduct Authority Responses to Crypto-assets report.

The Treasury Committee published its report on Crypto-assets on 19 September 2018. Its recommendations included:

Regulation needed for “Wild West” crypto-asset market
Problems include volatile prices, hacking vulnerabilities, minimal consumer protection, and anonymity aiding money laundering
Blockchain is currently slow, costly and energy-intensive, but there is potential for data storage uses
The ambiguity of the UK Government and regulators’ position is clearly not sustainable
Regulation could improve customer outcomes, enable sustainable growth, and reduce certain risks
In deciding the regulatory approach, Government should decide if growth should be encouraged
Proportionate regulation could see UK as well placed to become global centre for crypto-assets

Chair' comments

The Committee has today published responses to the report from the Government and the Financial Conduct Authority (FCA). Commenting on the response, Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee, said:

“The Treasury Committee would like to thank the Economic Secretary and Chief Executive of the FCA for providing evidence to the Committee’s inquiry, and for taking the time to respond to the report.

“It is clear that the Government and the FCA share the Committee’s concerns on crypto-assets, including the lack of regulation, minimal consumer protection, and anonymity aiding money laundering.

“The decision by the Government and the FCA to hold a series of consultations about how to mitigate these risks is welcome. The Committee will keep a close eye on these consultations and will continue to press for regulation.”

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