Source · Select Committees · Treasury Committee
Fifteenth Report - Regulating Crypto
Treasury Committee
HC 615
Published 17 May 2023
Government response
Seventh Special Report - Regulating Crypto: Government Response to the Committee’s Fifteenth Report · published 20 Jul 2023
Recommendations & Conclusions
2
Recommendation
Accepted
Para 31
Ensure FCA's cryptoasset authorisations gateway is open and effective for innovation.
Recommendation
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 …
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Government Response Summary
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
Para 36
Unclear future benefits of cryptoassets, but real risks to consumers and environment.
Conclusion
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 …
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Government Response Summary
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
Para 37
Adopt balanced approach to cryptoasset development, avoiding public funding without clear use case.
Recommendation
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 …
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Government Response Summary
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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