Cryptocurrencies

Baroness McIntosh of Pickering Excerpts

Tuesday 20th December 2022 Lords Chamber

[Lord Harlech (Con)]

Recent events in the crypto asset market such as the failure of FTX and the stablecoin Terra Luna have highlighted vulnerabilities in the sector and reinforce the need for timely, clear, appropriate and effective regulation. It is therefore important that we get that right. The Government’s commitment to strengthening strictly crypto asset regulation will support authorities in managing these risks to protect consumers, maintain financial stability and support innovation. This is, after all, a growth sector. The Government will continue to closely monitor the wider crypto asset market and will stand ready to take further regulatory action if required.

[Baroness McIntosh of Pickering (Con)]

Does my noble friend agree that the Government could be accused of being slow to regulate in this field? What type of regulation do the Government intend to introduce?

[Lord Harlech (Con)]

I thank my noble friend for the question. At Fintech Week 2022 the Government announced their commitment to consult on a world-leading regime for a broader set of crypto asset activities. The Financial Services and Markets Act also ensures that crypto assets may be regulated within the existing financial services regulatory framework. Furthermore, the UK is committed to creating a regulatory environment in which firms can innovate while, crucially, maintaining financial stability and regulatory standards.