Crypto Currencies

Lord Young of Cookham Excerpts

Monday 28th February 2022 Lords Chamber

Asked by

[Lord Young of Cookham]

To ask Her Majesty’s Government what assessment they have made of the use of crypto currencies in the United Kingdom.

[Baroness Penn (Con)]

My Lords, certain crypto assets offering new ways to transact and invest are part of a trend of rapid innovation in financial technology. However, these developments also present new challenges and risks, including risks to consumers and the financial system. In 2018 the Government established a Cryptoassets Taskforce, which is responsible for assessing developments in the crypto asset market. Her Majesty’s Treasury and UK authorities have taken a series of actions to support innovation while mitigating risks to stability, market integrity and consumers.

--- Later in debate ---

[Lord Young of Cookham (Con)]

I am grateful to my noble friend. While blockchain technology has much to commend it, with the UK being a world leader in financial technology, should not cryptocurrencies be subject to the same rules as other currencies? While many law-abiding citizens may have modest holdings of bitcoin, have not cryptocurrencies greatly facilitated the operations of blackmailers, drug dealers, fraudsters, tax evaders and terrorists, with crypto-based crime reaching an estimated $14 billion last year, as against nearly $8 billion the year before? What plans does my noble friend have to tame the beast?

[Baroness Penn (Con)]

My Lords, we are taking action to manage the most pressing risks from crypto assets. That includes including crypto assets in the most robust standards for money laundering and countering terrorist financing, and moving to regulate crypto asset promotions to ensure that they are held to high standards for fairness, clarity and accuracy.