Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the report by the Antisemitism Policy Trust entitled Antisemitism and Cryptocurrency: A perfect Union, published in 2022, if he will make an assessment of the implications for his policies of the use of cryptocurrency by (a) terrorist, (b) criminal and (c) other groups; and if he will make a statement.

Since January 2020 the FCA has been the Anti Money Laundering and Counter Terrorist Financing supervisor of UK cryptoasset activity. By maintaining a robust gateway for firms seeking to register for cryptoasset activity in the UK, we continue to reduce and prevent the financing of criminal and terrorist groups.

The government’s ambition is for the UK to be home to the most open, well-regulated, and technologically advanced capital markets in the world. However, recognising that there are both risks and opportunities associated with cryptoassets, the UK has adopted a staged, proportionate and agile approach to regulation, which is sensitive to risks posed, including the risk of financial crime, and responsive to new developments in the market.

This year a new regulatory measure known as the ‘travel rule’ comes into effect, ensuring that virtual-asset transfers are accompanied by detailed personal information of both the originator and beneficiary. The new requirements will apply to crypto-asset exchange providers and custodian wallet providers and will help remove some of the anonymity associated with private wallet addresses.