PARLIAMENTARY WRITTEN QUESTION
Cryptocurrencies (19 April 2021)

To ask the Chancellor of the Exchequer, what progress has been made on the Government’s consultation on cryptocurrencies; and what assessment he has made of the adequacy of the scope of that consultation.

Asked by:
Charlotte Nichols (Labour)

On 7 January HM Treasury published a consultation on the broader regulatory treatment of cryptoassets, with a focus on cryptoassets known as stablecoins. It also included a call for evidence on the use of Distributed Ledger Technology (DLT) in financial markets. This consultation has now closed. The Government is reviewing responses and will outline next steps in due course.

The Government’s near-term priority is to ensure the framework supports the safe use of stablecoins. The Government continues to actively monitor emerging risks as this market continues to mature and stands ready to take further regulatory action if required.

The Government also issued a consultation last year on a proposal to bring certain cryptoassets into the scope of financial promotions regulation. This would ensure that relevant cryptoasset promotions are held to the same high standards for fairness, clarity and accuracy that apply to the financial services industry. The consultation is now closed, and the Government will be publishing its response in due course.

Answered by:
John Glen (Conservative)
26 April 2021