UK Government announces official formation of cross-party crypto group

UK government
UK government

Looking to shape and inform policy on digital currency, the UK government has officially launched a new cross-party collaboration of MPs. 

It comes as the importance and prevalence of digital currency increases within the UK payment space and amongst consumers in the region. 

The group will take a magnified look at regulation with crypto seeking to further expand into the mainstream. 

Furthermore, it will also analyse how as crypto continues to grow, the threat of fraud around the coin can be minimised for consumers as they adapt to a new digital age. 

According to Finextra, Lisa Cameron MP, chair of the new group, stated: “We must ensure that we have an appropriate regulatory framework in the UK which supports innovation and guarantees that the UK remains an attractive destination for innovative firms to set up and grow.

“It is equally vital that we have a clear regime to protect consumers, ensuring they understand the risks, and are protected from the risk of economic harm posed by fraud and scams.”

The formation also coincides with elevated levels of tokenization and NFTs, which have been increasingly linked with sports clubs through partnerships and deals. 

Embodying just how the regulatory framework for digital currency firms is increasing in the UK, the Advertising Standards Authority last week upheld numerous complaints about adverts for

As part of the complaints, it was highlighted that the adverts failed to provide consumers, who were perhaps inexperienced when it came to trading and digital currency, with the risk of investment. 

It followed a decision by the body on Skrill, which led to the firm removing a paid-for advert on Reddit, which stated ‘Want to try making a profit on crypto without risking your money? Sign up now and give crypto a go, for free. If the value goes up the profits are yours to keep’. 

In responding to a complaint over the advert, the regulatory watchdog highlighted that the ‘CAP Code required that marketing communications for investments made clear that the value of investments was variable and, unless guaranteed, could go down as well as up’.