Cryptocurrencies

Baroness Altmann Excerpts

Tuesday 20th December 2022 Lords Chamber

[Lord Harlech (Con)]

The right reverend Prelate makes an excellent point. HMT is working closely with the FCA so that the risks involved in investing in this asset class can be clearly and explicitly conveyed to anyone who is thinking of making this type of investment.

[Baroness Altmann (Con)]

My Lords, I recognise the Government’s desire to be a leader in financial services and new technology. However, can my noble friend explain how we have managed to get cryptocurrencies approved and used under regulatory firms when their whole purpose is to evade the usual checks and balances in conventional financial systems? They have been a money launderers’ and a thieves’ paradise. We are sanctioning foreign Governments, but they can freely use these so-called assets, and there is also the environmental damage being done. I urge my noble friend to consider banning this activity from all regulated firms.

[Lord Harlech (Con)]

The Government launched a new anti-money laundering and counterterrorist financing regime for crypto assets in January 2020. UK crypto asset exchange providers and custodian wallet providers are now in the scope of the UK’s money laundering and terrorist financing regulations. Furthermore, the FCA proactively supervises registered firms and has a range of criminal and civil enforcement powers at its disposal.