Cryptocurrencies

Lord Cromwell Excerpts

Tuesday 20th December 2022 Lords Chamber

[Lord Harlech (Con)]

I thank my noble friend for the question. At Fintech Week 2022 the Government announced their commitment to consult on a world-leading regime for a broader set of crypto asset activities. The Financial Services and Markets Act also ensures that crypto assets may be regulated within the existing financial services regulatory framework. Furthermore, the UK is committed to creating a regulatory environment in which firms can innovate while, crucially, maintaining financial stability and regulatory standards.

[Lord Cromwell (CB)]

Some months ago, in the happy early days of the crypto world, the Treasury announced, rather to my surprise, that it was going to create its own non-fungible token. Is that still the case, and if so, why? If the Minister does not have the answer now, perhaps he can drop it in his Christmas card to me.

[Lord Harlech (Con)]

I thank the noble Lord for that question. The non-fungible token market has grown considerably over the past year. New types of NFTs have emerged that blur the boundary between financial services products and digital collector items. It is not the Government’s intention to apply financial regulation to NFTs. However, the Government will consult on the details of a future regulatory regime for crypto assets in due course, and NFTs will fall under this. We stand ready to take further legislative action as required.