UK Cryptoassets Taskforce To Explore Impact Of Cryptocurrencies

News | May 22, 2018 By:

UK’s new Cryptoassets Taskforce held its first meeting yesterday and agreed on key objectives.

The Taskforce was first announced in March of this year by Philip Hammond, UK Chancellor of the Exchequer and Second Lord of the Treasury, as part of the government’s FinTech Sector Strategy. It is a central part of the government and financial regulators’ efforts to understand and engage with the implications of new technologies in financial services. The Taskforce consists of HM Treasury, the Bank of England (BoE), and the Financial Conduct Authority (FCA).

During the meeting, the Taskforce agreed its objectives, which include 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.

While it will consider existing analysis by the government and regulators, the Cryptoassets Taskforce will also seek new views from trade bodies, academics, consumer groups and investor representatives. A roundtable will be forthcoming in July with a report published in Q3 of 2018.

Andrew Bailey, FCA Chief Executive, said that cryptoassets have been an area of increasing interest for markets and regulators globally including the FCA.

“We look forward to working with our counterparts at the Bank of England and the Treasury as part of the taskforce to develop thinking and policy on cryptoassets,” Bailey said.

Dave Ramsden, Deputy Governor of the Bank of England, said the technologies that underpin cryptoassets have the potential to deliver benefits both to the financial system and to the economy it serves.

“This taskforce will enable us to work closely with the Treasury and the FCA to explore how the opportunities posed by these technologies can be realized, while also tackling the risks arising from cryptoassets,” said Ramsden.