The request for proof on crypto-related issues comes as UK lawmakers seek to close a regulatory vacuum in the area.
The UK Treasury Board has launched an investigation into the risks and opportunities posed by crypto assets to businesses and consumers.
- According to the official note, the investigation is asking for evidence regarding the potential impact of distributed ledger technology (DLT) on financial institutions, including central banks and infrastructure. finance.
- The Treasury also seeks to cover areas such as the regulatory response to crypto assets from the government, the FCA, as well as the Bank of England. It also wants to know how the industry is currently being regulated across other jurisdictions to provide adequate protection for consumers and businesses without hindering innovation.
- The issues relate to the opportunities and risks presented by the introduction of the BoE Digital Currency, the impact of cryptocurrencies on social inclusion, and the ability of governments and regulators to seizing the opportunity” offered by crypto assets are some of the areas where the Treasury has sought submissions.
- The commission said submissions must be made by September 12.
- The latest investigation is also asking for evidence of the effectiveness of the advertising and money laundering related regulatory measures to date.
- The UK’s advertising watchdog – the Advertising Standards Authority – banned seven crypto ads last December.
- More recently, it warned over 50 crypto companies to review their ads and make sure they’re compliant with the rules. Essentially, the government has sought to include cryptocurrency advertisements under the same rules for financial promotions.
- Recently, the UK has taken a tougher stance on the crypto industry and is speeding up efforts to tackle hot button issues.