Crypto Asset Technology

Baroness Altmann Excerpts

Thursday 21st July 2022 Lords Chamber

[Baroness Altmann (Con)]

My Lords, given the cybersecurity and the anonymous and open nature of risks in blockchains, this seems to be rather inconsistent with money laundering rules in the rest of the financial system. Can my noble friend comment on inconsistencies in the environmental protection issues that this Government have worked so hard to achieve, given the environmental dangers of the proof-of-work cryptocurrency development and the risk to consumers, even in stablecoins?

[Baroness Penn (Con)]

My noble friend is right about the risks around money laundering and illicit finance. That is why crypto assets were brought within the anti-money laundering regime a few years ago. She is also absolutely right that some crypto assets can have a significant environmental impact. It is about the method by which they are generated or proved, and that is something we will consider as part of our consultation later this year.