The citizens of the UK have been directed to submit to the UK Treasury, evidences around the risks and opportunities that come along with the involvement of cryptocurrencies. The Treasury has opened an inquiry into assessing the impacts that the crypto sector can have on its financial operations. The aim of this probe is to explore ways to balance the impact of the crypto industry with regards to the existing operations of the UK’s Financial Conduct Authority (FCA) and the Bank of England (BoE).
In a post titled ‘Call of Evidence’, the UK Parliament has outlined what this inquiry on the crypto industry will cover.
“The role of crypto-assets in the UK, including the opportunities and risks that crypto-assets may bring to consumers, businesses and the government as well as the potential impact of distributed ledger technology on financial institutions,” have been listed among topics that the British authorities are looking to dive deeper into.
The government there has asked its people to give their opinion on whether the present financial system and governing authorities are suitably equipped to grasp the opportunities presented by crypto-assets and mitigate potential risks associated with the sector.
Written submissions are invited on the kind of work that the UK government can undertake in order to understand, prepare for, and change in order to drive safe crypto adoption in the nation.
The country is also open to accepting suggestions around the kind of tax laws that could encapsulate the crypto industry within the parameters of a safe investment industry.
The last date of sending-in the responses to these questions has been decided as September 12.
In April this year, the UK recognized stablecoins as an official mode of payment in the UK as part of its fresh announcements. Stablecoins, like Tether and Binance USD, are crypto assets pegged to reserve assets like gold or fiat currencies.
“The government intends to legislate to bring stablecoins — where used as a means of payment — within the payments regulatory perimeter, creating conditions for stablecoins issuers and service providers to operate and invest in the UK,” an official blog post from the UK authorities had said at the time.
The UK’s financial watchdogs have constantly expressed concerns about the economic instability that may seep in as an aftermath of the UK’s mass exposure to cryptocurrency.
Previously, the Bank of England (BoE) requested that special heed should be paid on trimming down risks of crypto misuse for financial distortion, money laundering, and other illicit activities that these decentralised and mostly untraceable virtual assets are capable of facilitating.
UK’s decision to invite public suggestions on its crypto laws comes a day after the US also released a similar direction for its residents.
Earlier this year, US President Joe Biden had signed an executing order, directing relevant agencies to start work on drafting laws around the crypto sector.
Now, the public of the US can now weigh-in on the kind of crypto rules they want tailored specifically for them and the last date for submission has been decided as August 8.