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Highlights
- A group of UK lawmakers will reportedly submit a report to the UK government on crypto regulations to ensure a check on the financial crimes and consumer protection.
- The panel consists of members of the UK Parliament as well as the House of Lords.
The United Kingdom government in 2022 it seems to have taken an aggressive stance towards cryptocurrencies. With the market witnessing unprecedented fall in the last few weeks, many investors now are shying away from further investment with the heighted fear in the market. The Boris Johnson government and the regulatory authority are looking to box out cryptos further by introducing necessary regulations.
It is anticipated that in the coming weeks, a bipartisan group of lawmakers, who are in process of overseeing the possibilities of regulating the market, will submit a detailed report to the UK government. Many countries in the recent past, such as China, Kosovo etc, have banned crypto-related activities within their states in a bid to safeguard the investors. Now it seems, the UK government is also planning to regulate the cryptocurrencies.
Also read: Can crypto insurance become a reality soon?
New Parliament Panel
As per sources, the Boris Johnson government is planning a regulatory crackdown not just on the crypto investments, but also NFTs. Majority of UK football clubs either have crypto partnerships in form of jersey endorsements or as fan tokens or as NFTs.
A dedicated committee or a panel has been formed to oversee or draft a plan for crypto regulations. According to The Financial Times, a panel called the Crypto and Digital Assets Group has been formed to review plans of how cryptos should be regulated, which consists of members of the Parliament and the House of Lords. Lisa Cameron, member of the Scottish National Party, said that the main motive of the panel is to ensure a check on the financial crimes and consumer protection.
Also read: How UK is leading cryptocurrency adoption in Europe
High financial crimes
The UK government and financial regulator Financial Conduct Authority have always warned investors and layman about the risks attached with cryptocurrencies. According to a report by Chainalysis, the blockchain data platform, crypto-based crimes were at a record high in 2021. The year saw losses of US$14 billion, up from US$7.8 billion in 2020.
Another report from New Scientist highlighted thar in the past five years, the UK police seized approximately £322 million (US$435 million) in various criminal investigations. London Metropolitan police alone seized £294 million in Bitcoin in July 2021. Not just bitcoin, other digital currencies such as Ethereum, Monero, Dash, and Zcash were also recovered in the raids.
Is the UK edging closer to crypto regulation?
Conclusion
It is very evident that the Boris Johnson government is seriously thinking about the crypto regulations. But how soon it will be implemented is still uncertain. Experts feel that UK being a major hub for cryptos in Europe, the regulations could send the market in a tizzy. Crypto enthusiasts over the next few months will be keeping a close tab on the market as well as what regulations the UK government adopts to safeguard the investors.
