Cryptocurrencies

Lord Davidson of Glen Clova Excerpts

Tuesday 20th December 2022 Lords Chamber

Asked by

[Lord Davidson of Glen Clova]

To ask His Majesty’s Government whether they have revised their policy towards cryptocurrencies following the collapse of the cryptocurrency exchange FTX.

[Lord Harlech (Con)]

The UK remains committed to creating an environment where firms can innovate while maintaining financial stability and regulatory standards so that people and businesses can use technology safely. Recent events in the crypto market reinforce the case for timely, clear and effective regulation. The Government have already taken steps to bring certain crypto asset activities into the scope of UK regulation and will consult on proposals for a broader regulatory regime in the coming weeks.

[Lord Davidson of Glen Clova (Lab)]

I thank the noble Lord for the response. The reason for my Question is that it emerged in April of this year that the Government wish to make the UK a global hub for cryptocurrency assets. The incoming head of the FCA regards crypto platforms as “deliberately evasive” and facilitating money laundering. That rather sounds like the circumstances underlying the FTX collapse. The head of research of the Bank for International Settlements said in the Financial Times on Saturday that as far as he was concerned, he saw little tangible economic activity deriving from the crypto world—

[Noble Lords]

Question!

[Lord Davidson of Glen Clova (Lab)]

The question is coming. He went on to say that public policy

“needs to start with a realistic assessment of the economic value that flows from blockchain technology.”

I assume that the Government have done the realistic assessment. What economic value have the Government detected within this technology?