The inaugural report from the Crypto & Digital Assets APPG has been praised by CryptoUK for presenting a ‘holistic view on the UK sector’.
In total, the report makes 53 recommendations to the Government, and takes a specific look at the regulatory framework for the crypto sector, in order to harness innovation and growth in the UK.
It also highlights ambitions for the UK to become a global crypto hub and attract some of the industry’s leaders.
Having grown to become a home for fintech and taking on the mantle as a leader in the space, the report outlined the UK’s potential within crypto. It outlined that this could have a key impact on employment and capital in the UK.
It drew attention to ‘the significant economic benefits of a well regulated and responsible cryptocurrency and digital assets sector’, highlighting that research by King’s College London found that in 2021, there were over 14,000 jobs advertised on LinkedIn in the cryptocurrency and blockchain industry worldwide. UK-based firms provided almost a quarter of those job advertisements even though the UK housed less than 7% of all blockchain and cryptocurrency firms worldwide.
Commenting on the inaugural report, Ian Taylor, Board Advisor at CryptoUK, the trade body for the UK crypto industry, said: “We are extremely pleased to see that the inaugural report from the Crypto & Digital Assets APPG issued today. This is balanced, considered, and presents a holistic view of the UK’s crypto and digital assets sector.
“The report recognises the significant growth of the sector in the UK and the tremendous opportunity it presents for the country’s economy and reputation as a leader in financial innovation. It also emphasises the need for the government and regulators to define a clear, proportionate and bespoke regulatory framework to enable blockchain businesses to operate effectively, foster innovation and protect consumers.
“We have continued to strongly advocate for the need to be working alongside the government in ensuring that the industry has the opportunity to grow within a regulatory framework that allows the development of new technology and does not restrict or stifle innovation. We believe the recommendations from this report will allow for more engagement and cross-governmental dialogue to continue to educate and inform policymakers on the critical issues our members face.”
The report specifically highlighted the importance of regulation complimenting growth as the UK looks for economic prosperity off the back of a departure from the EU. It detailed the importance of proportionality and balance as the UK looks to embrace digital currencies.
Taylor added: “The report is unique for this industry by virtue of the fact that it has taken both the views of cross-party MPs and Lords, and input provided by a broad range of contributors from across the Web3 industry, academia, and regulators into account. We welcome the APPG’s provision of thoughtful and evidence-based conclusions and recommendations.
“We acknowledge the concerns about the readiness of the current regulatory governance regime, and fully support the work needed to ensure this is robust, fit-for-purpose and enables the industry to realise its full potential whilst operating effectively and safely.
“The opportunities and challenges highlighted in the report reflect the aims and positions of CryptoUK as the trade association for the UK’s digital assets sector. We look forward to taking the recommendations and actions forward in partnership with the members of the APPG, representatives of the government and its regulators, and our members and the wider community.”