Source · Select Committees · Treasury Committee
Recommendation 44
44
We note the increasing risks around cryptoassets and economic crime.
Conclusion
We note the increasing risks around cryptoassets and economic crime. We share the Government’s concern about the risk to consumers from the growth in the market for cryptoassets. We welcome the announcement by the Treasury that the Government will legislate to bring advertising of cryptoassets into line with that of other financial services and products, and that the FCA is strengthening financial promotion rules, including those for cryptoassets. (Paragraph 195) Economic Crime 77
Government Response
Not Addressed
HM Government
Not Addressed
We recognise the benefits that cryptoassets and their underlying technology may offer to financial services and will continue to encourage innovation and support competition in consumers interests. However, like in other areas, different types of cryptoasset activities and business models bring different risks of harm for consumers and markets. Furthermore, we have continued to warn consumers of the risks of investments advertising high returns based on cryptoassets, making clear that they should be prepared to lose all their money. Ultimately, the scope of our regulatory perimeter is a matter for the Government and we are working with them to inform thinking on any further regulatory or legislative actions that may be required to mitigate risks which are not covered by existing regulation.