• U.K.’s Financial-Services Minister Andrew Griffith has pledged greater engagement with the crypto sector as he plans new post-Brexit laws.
• Griffith has committed to having six roundtables with the sector in 2023 in order to bring forward timely, sensible, and balanced regulations.
• Griffith was berated by lawmakers for being too slow in releasing his long-awaited crypto consultation.
As the United Kingdom looks to make a post-Brexit break from the European Union, its Financial-Services Minister, Andrew Griffith, has committed to engaging more with the burgeoning crypto sector in order to bring on timely, sensible, and balanced regulation.
During a Wednesday parliamentary debate on regulating crypto, Griffith said he was committed to working with the crypto industry to establish regulations. In order to do so, Griffith has pledged to have six roundtables with the sector throughout 2023. “We’ll bring forward timely, sensible and balanced regulation in order to allow the safe use of this technology,” said Griffith, “while ensuring regulatory clarity and facilitating financial-technology investment.”
The commitment from Griffith follows on the heels of Prime Minister Rishi Sunak’s April 2020 promise to make the U.K. a “crypto hub”. However, lawmakers were quick to berate the financial-services minister for his lack of progress in releasing a “consultation” document, which is a document put out for discussion on how to govern the financial technology.
“While the Government is taking its time to bring forward a consultation, the sector is evolving rapidly and the UK risks being left behind in the race to be a global leader in this area,” said Siobhain McDonagh, a Labour Party lawmaker.
Griffith responded to the criticism by reaffirming his commitment to engaging more with the crypto sector and to bringing forward timely, sensible, and balanced regulations. He also noted that the consultation document would be released soon, and that the Government was “looking very closely at the issue of consumer protection and the regulation of cryptoassets”.
The U.K. Government’s commitment to engaging more with the crypto sector and bringing forward timely regulations could have far-reaching implications. It could lead to an increase in consumer confidence, which could in turn drive more investment in crypto-related projects. It could also open the door for a regulatory framework that would make it easier for entrepreneurs and investors to navigate the crypto sector.
The U.K.’s embrace of crypto could also have wider implications for the European Union, which has been cautious in embracing digital currencies and asset tokens. The U.K.’s new regulations could set a new standard in the EU and potentially pave the way for more crypto-friendly regulations across the continent.
Only time will tell if the U.K.’s commitment to engaging more with the crypto sector and bringing forward timely regulations will be successful. But, the commitment alone is an encouraging sign for the crypto industry and could potentially pave the way for a future of greater innovation in the sector.
