Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect on (a) the UK financial technology sector and (b) the UK economy of the current regulatory approach to the UK cryptocurrency sector.

The Government published the Fintech Sector Strategy on 22 March, which sets out the action we have taken to make the UK the best place to start and grow a fintech business, including setting out the current regulatory approach, and what else we plan to do to maintain this position. This strategy also looked at the impact of the Fintech sector on the UK economy.

As part of the Fintech Sector Strategy, the Government established a Cryptoassets Taskforce, consisting of HM Treasury, the Bank of England, and the Financial Conduct Authority. This Taskforce is exploring the impact of cryptoassets, the potential benefits and challenges of the application of distributed ledger technology in financial services, and assessing what, if any, regulation is required in response. The Taskforce will report back by the end of summer.