Cryptocurrencies

Lord Cromwell Excerpts

Wednesday 2nd March 2022 Lords Chamber

[Baroness Penn (Con)]

I absolutely agree on the importance of this issue. On firms placing blocks on Russian transactions, the Government and the FCA have communicated with crypto firms to ensure that they understand their obligations with regards to sanctions, which include applying risk-based controls to mitigate the risk of sanctions evasion. However, we do not require that all Russian persons have their accounts suspended or frozen; that would not be in line with our current approach.

[Lord Cromwell (CB)]

Does the Minister agree that cryptocurrencies, which are unfortunately named, and all digital assets are widely misunderstood? Does she further agree that they are here, we have them—more than 3 million people in this country already hold them—and when they are properly regulated, as the noble Lord, Lord Haskel, would have us do, they will be an important and innovative growth opportunity for the UK economy? Cryptocurrencies were referred to by another noble Lord this week as “the beast”. Will the Minister be “the beauty” whose good offices turn the beast into a handsome prince?

[Baroness Penn (Con)]

I agree with all the points that the noble Lord makes. Earlier this week I tried to emphasise that, while we are cognisant of risks from certain types of crypto assets and will regulate appropriately, we are also keen to see the opportunities for the technology that lies behind these and want to promote innovation in a secure way.