Source · Select Committees · Treasury Committee
Recommendation 45
45
Acknowledged
Paragraph: 196
The work being done by the Advertising Standards Authority to protect consumers from misleading advertisements...
Recommendation
The work being done by the Advertising Standards Authority to protect consumers from misleading advertisements for cryptoassets is also welcome. The Government should ensure that there is proper consumer protection regulation across the whole cryptoasset industry.
Government response summary AI-generated
The government recognises 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 and is working with them to inform thinking on any further regulatory or legislative actions that may be required.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
196
Government Response
Acknowledged
HM Government · verbatim extract
Acknowledged
The government believes that it is important that regulation supports innovation in the industry, while protecting consumers from harm. This extends to ensuring that the regulators of our financial system have the right tools to manage those risks. In 2018 the government launched a cross-authority Cryptoassets Taskforce with the aim of exploring the impact of a rapidly developing cryptoasset market. UK authorities have taken a series of actions to support innovation while mitigating risks to stability and market integrity. As previously noted, these include confirming an intention to legislate to regulate cryptoasset promotions, ensuring they are fair, clear and not misleading; and consulting on a proposal to ensure cryptoassets known as ‘stablecoins’ meet the same high standards expected of other payment methods. The government issued its response to this consultation in April 2022, confirming its intention to legislate to this effect. 18 The FCA and Bank of England have warned that buying cryptoassets involves high risks, and that investors should be prepared to lose all of their money. The government is carefully considering what, if any, regulation might need to follow as the cryptoasset market grows and evolves in the UK. The government has adopted a staged and proportionate approach to cryptoassets regulation, which is sensitive to risks posed, and responsive to new developments in the market. The Cryptoasset Taskforce will continue to steer the UK’s regulatory response to the cryptoasset market.
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