Crypto Asset Technology

Lord Flight Excerpts

Thursday 21st July 2022 Lords Chamber

[Baroness Penn (Con)]

I would like to reassure my noble friend that we are taking a staged and proportionate approach to crypto asset regulation that is sensitive to the risks posed but also responsive to new developments in the market. I have referred to a number of areas in which we have already regulated for crypto assets, and in the forthcoming Financial Services and Markets Bill we will legislate to regulate stablecoins. Later this year, we will also consult on the wider regulation of the sector. I absolutely agree with him about the opportunities this market can provide for the UK economy.

[Lord Flight (Con)]

My Lords, if the cryptocurrency market got so huge that it posed a major credit threat, would the Government consider introducing some form of regulation?

[Baroness Penn (Con)]

The Government are considering some form of regulation; that is why we are consulting on it later this year. My noble friend is absolutely right that financial stability is one consideration that we have to bear in mind when looking at this market.