The crypto-asset industry

Treasury Committee Closed Inquiry
Opened: 12 Jul 2022 Closed: 11 Mar 2024 Parliament page
In this inquiry, the Treasury Committee will examine the potential risks and opportunities associated with the use of crypto-assets, their impact on social inclusivity and the possible need for regulatory change in the future. Read the call for evidence to find out more about the inquiry
12 Recommendations
6 Conclusions
2 Reports
6 Letters
4 Events
Activity timeline 14 events
31 Jan
2024
Report published
25 Jan
2024
Correspondence
2 Dec
2023
Report published
20 Jul
2023
Report published
1 Jun
2023
Correspondence
17 May
2023
Report published
25 Apr
2023
Correspondence
25 Apr
2023
Correspondence
28 Feb
2023
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
26 Jan
2023
Correspondence
10 Jan
2023
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
7 Dec
2022
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Recommendations & Conclusions
8 results
Clear
2 Recommendation Accepted
Fifteenth Report - Regulating Cryp…
Ensure FCA's cryptoasset authorisations gateway is open and effective for innovation.
It has been more than four years since our predecessor Committee’s Report called for greater regulation of the cryptoasset industry, and the FCA faces challenges in implementing existing and proposed crypto regulations. It is important that the Government and regulators … Read more
Government Response
The government agrees on keeping pace with crypto developments, highlighting existing AML-CTF and financial promotion regulations. It commits that HM Treasury and the FCA will work to clarify authorisation gateway standards and the FCA is increasing capacity and adopting a timely process for complete applications.
HM Treasury
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3 Conclusion Accepted
Fifteenth Report - Regulating Cryp…
Unclear future benefits of cryptoassets, but real risks to consumers and environment.
While we support financial innovation where there are potential benefits, the extent of the benefits cryptoasset technologies may bring to financial services in the future—and the areas in which the technologies may have the most impact— remains unclear. In the … Read more
Government Response
The government strongly agrees with a balanced, technology-neutral approach, acknowledging the uncertain benefits and evolving nature of cryptoassets. It reiterates its focus on regulating cryptoasset activity and clarifies that FMI sandboxes will be implemented this year to promote responsible innovation.
HM Treasury
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4 Recommendation Accepted
Fifteenth Report - Regulating Cryp…
Adopt balanced approach to cryptoasset development, avoiding public funding without clear use case.
We recommend that the Government takes a balanced approach to supporting the development of cryptoasset technologies. It should seek to avoid expending public resources on supporting cryptoasset activities without a clear, beneficial use case, as appears to have been the … Read more
Government Response
The government strongly agrees with a balanced, technology-neutral approach, confirming its current regulation-focused strategy. It commits to implementing the first FMI Sandbox this year to support responsible innovation and states the Royal Mint is not proceeding with the NFT, with no taxpayer money used.
HM Treasury
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4 Conclusion Accepted
First Report - The digital pound: …
Strong privacy safeguards are vital in the fundamental design of any digital pound.
Strong privacy safeguards would be vital were a digital pound to be introduced. Although the Bank of England and Government state that it is not their intention to be able to access users’ data, it is conceivable that they may … Read more
Government Response
The government has committed to guaranteeing users' privacy in primary legislation if a digital pound is launched, aligning with the report's emphasis on strong privacy safeguards and confirming neither the Government nor the Bank would access personal data.
HM Treasury
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5 Recommendation Accepted
First Report - The digital pound: …
Prohibit Government and Bank of England from using digital pound data beyond law enforcement.
We recommend that any primary legislation used to introduce a digital pound does not allow the Government or Bank of England to use the data from a digital pound for any purposes beyond those already permitted for law enforcement.
Government Response
The government has committed to guaranteeing users' privacy in primary legislation if a digital pound were launched, confirming neither the Government nor the Bank would have access to personal data beyond existing law enforcement permissions.
HM Treasury
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8 Recommendation Accepted
First Report - The digital pound: …
Digital pound must support financial inclusion, exploring offline payment options for accessibility.
It would be important to support financial inclusion to the greatest possible extent through a digital pound were it to be launched, including by exploring the option of offline payments to ensure accessibility by users with limited or unreliable internet … Read more
Government Response
The government has accepted the recommendation, establishing a working group to report on offline payments by year-end, and committing to conduct experiments exploring accessibility for digitally excluded users.
HM Treasury
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10 Recommendation Accepted
First Report - The digital pound: …
Unclear whether digital pound benefits outweigh significant privacy and financial stability risks.
This report has set out some of the benefits and risks from a digital pound. While there are some potential benefits, their extent is unclear and there are significant risks and challenges to be worked through, particularly in relation to … Read more
Government Response
The government accepts the recommendation, stating that the committee's message aligns with HM Treasury and the Bank's approach to the next design phase, which will deepen understanding and build an evidence base for a decision later this decade.
HM Treasury
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12 Recommendation Accepted
First Report - The digital pound: …
Mandate a neutral and rigorous cost-benefit analysis for any digital pound launch decision.
Building the infrastructure needed for a digital pound would also likely be very expensive, and the eventual decision on whether to launch a digital pound will need to be subject to a rigorous cost-benefit analysis. The Bank of England and … Read more
Government Response
The government agrees that a balanced, transparent, and rigorous approach, from a neutral stance, is required for the cost-benefit analysis of a digital pound, which will cover economic, societal, and financial implications.
HM Treasury
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Government Response AI assessment · 18 of 12 classified
Accepted 8
Accepted in Part 3
Acknowledged 3
Deferred 1
Rejected 3
Total 12 recs + 6 conclusions
Correspondence 6 letters
25 Jan 2024 Correspondence from HM Treasury and the Bank of England, in response to the Committee’s First Report of the Session 'The Digital Pound: Still a Solution in Search of a Problem?', dated 25 January 2024
Parliament page
1 Jun 2023 Correspondence from the Chancellor of the Exchequer regarding Commitment on Central Bank Digital Currency, dated 23 May 2023
Parliament page
25 Apr 2023 Correspondence from the Bank of England, relating to the session on ‘The crypto-asset industry’ on 28 February, dated 13 April
Parliament page
25 Apr 2023 Correspondence from the Chair to the Bank of England, relating to the session on ‘The crypto-asset industry’ on 28 February, dated 20 March
Parliament page
26 Jan 2023 Correspondence from the FCA relating to the session on ‘The crypto-asset industry’ on 7 December 2022
Parliament page
16 Nov 2022 Correspondence from Binance, relating to the session on ‘The crypto-asset industry’ on Monday 14 November, dated 15 November
Parliament page