Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps the Government is taking to promote the use of blockchain technology in the financial sector; and what assessment the Government has made of the need for greater regulation of blockchain technology in that sector.

The government’s ambition is for the UK to consolidate its world-leading position in FinTech and to become the leading global hub for financial innovation. We have taken, and will continue to take, key policy steps to achieve this.

Blockchain technology could offer significant benefits across the economy, including in Financial Services. Accordingly, the Industry is assessing the potential benefits of blockchain and whether regulation is a barrier to innovation.

The government’s most direct interface with the FinTech industry is the Financial Conduct Authority (FCA), through its world-leading Innovation Hub to help innovative businesses that are looking to introduce ground-breaking products or services to financial services, a model being replicated around the world.

On 10 April, the FCA launched a discussion paper to gauge industry’s views on the future development of blockchain – and potential barriers to this - which closes in 17 July 2017. In addition, the FCA is continuing to learn from blockchain use cases being tested in its Regulatory Sandbox.

The government looks forward to hearing the outcome of the FCA’s work, and will act to remove identified barriers to the adoption of blockchain, or address identified risks, subject to wider objectives including financial stability and consumer protection.