Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent discussions he has had with (a) the Secretary of State for Digital, Culture, Media and Sport, (b) the Gambling Commission and (c) the Financial Conduct Authority on the regulation of crypto-based products and services.

Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

The Cryptoasset Taskforce, comprising HM Treasury, the Bank of England, the Financial Conduct Authority (FCA), and the Payment Systems Regulator (PSR), continues to monitor ongoing development in cryptoasset markets, and is taking forward a range of regulatory measures to mitigate market integrity risks, protect consumers and support innovation in the cryptoasset market.

Since January 2020, cryptoasset firms operating in the UK have been subject to the Money Laundering Regulations. To protect consumers, on 18 January 2022, the government set out its intention to legislate later this year to bring certain cryptoassets into financial promotion regulation. This would ensure that relevant cryptoasset promotions are held to the same high standards for fairness, clarity and accuracy that exist in the financial services industry. Additionally, on the 20 July, the government introduced the Financial Services and Markets Bill, which includes a measure allowing HM Treasury to bring stablecoins, where used as a means of payment, within the UK regulatory perimeter.

The government has committed to consult later this year on the broader regulation of cryptoassets.