Innovate Finance’s Adam Jackson on the UK Parliament Treasury Committee’s Crypto Sector Report

The UK Parliament Treasury Committee’s recent crypto sector report, suggesting that consumer cryptocurrencies should be treated akin to gambling, has been addressed by Adam Jackson, Director of Policy at Innovate Finance. The report’s recommendations have been met with informed commentary from Innovate Finance, the leading voice for the UK’s financial technology sector.

Adam Jackson, Director of Policy at Innovate Finance, has responded to the report’s implications: “The UK Parliament Treasury Committee report on the crypto-asset industry makes some key observations which we, at Innovate Finance, welcome: recognition that cryptoassets and their technologies can bring benefits to financial services and markets, welcoming Government proposals on regulation in this area and calling for the FCA’s authorisation gateway to be open and effective.”

Innovate Finance has highlighted the transformative potential of blockchain technology and asset tokenisation in previous submissions to the Committee. The organization emphasized the necessity for a transparent and well-resourced process for authorising cryptoasset service providers, particularly in relation to anti-money laundering measures.

Addressing the Committee’s concerns over a potential ‘halo’ effect, Jackson offered a further perspective: “The Treasury Committee also concludes that regulating the trading of unbacked cryptoassets will create a ‘halo’ effect that could lead consumers to conclude that it is safer than it is. As the trade association for FinTech in the UK, including responsible cryptoasset service providers, we strongly support regulation of cryptoassets, which is essential for consumers, stable markets and a level playing field.”

Innovate Finance endorses the UK Government’s comprehensive approach to cryptoasset regulation, including key areas highlighted over the past year. They believe this comprehensive approach will respond to the increasing demand for regulation in this rapidly evolving sector.

Jackson concludes that the application of existing financial services regulation to cryptoassets, consistent with the actions of other jurisdictions, is the right course of action. He notes that the application and adaptation of these rules, including the new Consumer Duty, will provide a high level of protection, especially for consumers deemed vulnerable.

Innovate Finance is committed to fostering dialogue and engagement between industry, regulators, the government, and parliamentarians, understanding the importance of these discussions in shaping the future of the fintech industry. Innovate Finance has made its evidence submitted to the Treasury Committee and its response to the HM Treasury consultation on cryptoasset regulation available for further insight.

You can access the evidence submitted by Innovate Finance to the Treasury Committee here, as well as their recent response to the HM Treasury consultation on cryptoasset regulation here.