Asked by: Lord Mendelsohn (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether (1) the Cryptoasset Taskforce, or (2) any government department, collects or collates data on the environmental impact of cryptocurrencies; and if so, when any such data will be published.
Answered by Lord Agnew of Oulton
The Government has been monitoring developments within the cryptoasset industry, including rising energy usage.
The Cryptoasset Taskforce, comprising HM Treasury, the Financial Conduct Authority, and the Bank of England, considers the impact of cryptoassets and assesses what, if any, regulation is required in response. The Government stands ready to respond to emerging risks or changes in the market and will continue to monitor developments in cryptoassets.
In November 2020, the Chancellor announced that the UK will implement a green taxonomy – a common framework for determining which activities can be defined as environmentally sustainable – which will improve understanding of the impact of firms’ activities and investments on the environment and support our transition to a sustainable economy. More details on the green taxonomy will be announced in due course.
The Government has already taken action to ensure the UK is the world-leading centre for green finance including through announcing an intention to make disclosures aligned with the Taskforce on Climate-related Financial Disclosures (TCFD) fully mandatory across the economy by 2025, making the UK the first country to do so.Asked by: Charlotte Nichols (Labour - Warrington North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to protect (a) long-term retail and (b) amateur investors in crypto-currencies; and what steps his Department plans to take in the event of significant or long-term falls in market values of the different types of (i) current and (ii) future cryptocurrencies.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government established a Cryptoassets Taskforce in 2018, consisting of HM Treasury, the Bank of England, and the Financial Conduct Authority (FCA). The Taskforce’s objectives include exploring the risks and opportunities of cryptoassets, the potential benefits and challenges of Distributed Ledger Technology (DLT) in financial services; as well as assessing what, if any, regulation is required in response.
HM Treasury and UK authorities have taken a series of actions to mitigate risks to retail investors, stability, and market integrity, as well as preventing the use of cryptoassets in illicit activity.
Last year, the Government issued a consultation on a proposal to bring certain cryptoassets, including Bitcoin, into the scope of financial promotions regulation. This would ensure that relevant cryptoasset promotions are held to the same high standards for fairness, clarity, and accuracy that pertain in the financial services industry. The Government will be publishing its response in due course.
To further protect consumers, the FCA has banned the sale of cryptoasset derivatives to retail consumers, and recently issued a warning stating that consumers who invest in cryptoassets should be prepared to lose their money. Alongside this, the Government launched a new anti-money laundering and counter-terrorist financing regime for cryptoassets in 2020.
The Government launched a consultation on its regulatory approach to cryptoassets and stablecoins on 7 January. This set out the Government’s position that new innovations in the sector could deliver substantial benefits, but also present new challenges and risks. This consultation has now closed.
The Government is processing responses and will outline next steps in due course. Any steps taken in light of this consultation will aim to balance the potential risk to consumers with the ambition to foster competition and innovation in the sector.
The Government continues to actively monitor emerging risks as this market continues to mature and stands ready to take further regulatory action if required.
Asked by: Philip Davies (Conservative - Shipley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect on the UK’s international competitiveness of the delays to the Financial Conduct Authority’s crypto asset anti-money laundering / counter-terrorist financing registration regime.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK is committed to having a robust AML regime for cryptoassets which will help to bolster confidence in the UK as a safe and reputable place to start and grow a cryptoasset business.
On 10 January 2020, the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptoassets firms. Due to the complexity and standard of applications received, the FCA was not able to process and register all applications by the 10 January 2021 deadline. A significant number of firms have failed to implement appropriately robust AML control frameworks, and to employ fit and proper personnel.
On 16 December 2020 the FCA announced that it was establishing a ‘Temporary Registration Regime’, under which relevant firms are eligible to continue trading pending a decision. This is due to expire on 9 July 2021.
As of 24 May 2021, 5 cryptoasset businesses have received registration from the FCA since 10 January 2020. Of the firms assessed to date over 90% have withdrawn their application following FCA intervention. There are 167 cryptoasset businesses with outstanding applications for AML/CTF registration with the FCA. 77 new cryptoasset businesses have applications pending full assessment.
On 7 January HM Treasury published a consultation on the broader regulatory treatment of cryptoassets, with a focus on cryptoassets known as stablecoins. It also included a call for evidence on the use of Distributed Ledger Technology (DLT) in financial markets. This consultation has now closed. The government is processing responses and will outline next steps in due course. Any future regulatory regime for cryptoassets set out by the Government in light of this consultation will aim to balance the potential risk to consumers with the ambition to stimulate competition and innovation in the industry.
HM Treasury officials are in regular contact with the FCA, as well as individual firms, industry groups and associations and consumer facing organisations to listen to their concerns on the full range of financial services related issues including cryptoassets.
Asked by: Philip Davies (Conservative - Shipley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect on the UK’s attractiveness to new crypto asset businesses of the delays to the crypto asset anti-money laundering / counter-terrorist financing registration regime by the Financial Conduct Authority.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK is committed to having a robust AML regime for cryptoassets which will help to bolster confidence in the UK as a safe and reputable place to start and grow a cryptoasset business.
On 10 January 2020, the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptoassets firms. Due to the complexity and standard of applications received, the FCA was not able to process and register all applications by the 10 January 2021 deadline. A significant number of firms have failed to implement appropriately robust AML control frameworks, and to employ fit and proper personnel.
On 16 December 2020 the FCA announced that it was establishing a ‘Temporary Registration Regime’, under which relevant firms are eligible to continue trading pending a decision. This is due to expire on 9 July 2021.
As of 24 May 2021, 5 cryptoasset businesses have received registration from the FCA since 10 January 2020. Of the firms assessed to date over 90% have withdrawn their application following FCA intervention. There are 167 cryptoasset businesses with outstanding applications for AML/CTF registration with the FCA. 77 new cryptoasset businesses have applications pending full assessment.
On 7 January HM Treasury published a consultation on the broader regulatory treatment of cryptoassets, with a focus on cryptoassets known as stablecoins. It also included a call for evidence on the use of Distributed Ledger Technology (DLT) in financial markets. This consultation has now closed. The government is processing responses and will outline next steps in due course. Any future regulatory regime for cryptoassets set out by the Government in light of this consultation will aim to balance the potential risk to consumers with the ambition to stimulate competition and innovation in the industry.
HM Treasury officials are in regular contact with the FCA, as well as individual firms, industry groups and associations and consumer facing organisations to listen to their concerns on the full range of financial services related issues including cryptoassets.
Asked by: Philip Davies (Conservative - Shipley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect on the UK’s status as a FinTech hub of the delays to the crypto asset anti-money laundering / counter-terrorist financing registration regime by the Financial Conduct Authority.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK is committed to having a robust AML regime for cryptoassets which will help to bolster confidence in the UK as a safe and reputable place to start and grow a cryptoasset business.
On 10 January 2020, the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptoassets firms. Due to the complexity and standard of applications received, the FCA was not able to process and register all applications by the 10 January 2021 deadline. A significant number of firms have failed to implement appropriately robust AML control frameworks, and to employ fit and proper personnel.
On 16 December 2020 the FCA announced that it was establishing a ‘Temporary Registration Regime’, under which relevant firms are eligible to continue trading pending a decision. This is due to expire on 9 July 2021.
As of 24 May 2021, 5 cryptoasset businesses have received registration from the FCA since 10 January 2020. Of the firms assessed to date over 90% have withdrawn their application following FCA intervention. There are 167 cryptoasset businesses with outstanding applications for AML/CTF registration with the FCA. 77 new cryptoasset businesses have applications pending full assessment.
On 7 January HM Treasury published a consultation on the broader regulatory treatment of cryptoassets, with a focus on cryptoassets known as stablecoins. It also included a call for evidence on the use of Distributed Ledger Technology (DLT) in financial markets. This consultation has now closed. The government is processing responses and will outline next steps in due course. Any future regulatory regime for cryptoassets set out by the Government in light of this consultation will aim to balance the potential risk to consumers with the ambition to stimulate competition and innovation in the industry.
HM Treasury officials are in regular contact with the FCA, as well as individual firms, industry groups and associations and consumer facing organisations to listen to their concerns on the full range of financial services related issues including cryptoassets.
Asked by: Philip Davies (Conservative - Shipley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the average length of time taken for the Financial Conduct Authority to process applications for anti-money laundering / counter-terrorist financing crypto asset registration.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK is committed to having a robust AML regime for cryptoassets which will help to bolster confidence in the UK as a safe and reputable place to start and grow a cryptoasset business.
On 10 January 2020, the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptoassets firms. Due to the complexity and standard of applications received, the FCA was not able to process and register all applications by the 10 January 2021 deadline. A significant number of firms have failed to implement appropriately robust AML control frameworks, and to employ fit and proper personnel.
On 16 December 2020 the FCA announced that it was establishing a ‘Temporary Registration Regime’, under which relevant firms are eligible to continue trading pending a decision. This is due to expire on 9 July 2021.
As of 24 May 2021, 5 cryptoasset businesses have received registration from the FCA since 10 January 2020. Of the firms assessed to date over 90% have withdrawn their application following FCA intervention. There are 167 cryptoasset businesses with outstanding applications for AML/CTF registration with the FCA. 77 new cryptoasset businesses have applications pending full assessment.
On 7 January HM Treasury published a consultation on the broader regulatory treatment of cryptoassets, with a focus on cryptoassets known as stablecoins. It also included a call for evidence on the use of Distributed Ledger Technology (DLT) in financial markets. This consultation has now closed. The government is processing responses and will outline next steps in due course. Any future regulatory regime for cryptoassets set out by the Government in light of this consultation will aim to balance the potential risk to consumers with the ambition to stimulate competition and innovation in the industry.
HM Treasury officials are in regular contact with the FCA, as well as individual firms, industry groups and associations and consumer facing organisations to listen to their concerns on the full range of financial services related issues including cryptoassets.
Asked by: Philip Davies (Conservative - Shipley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the timeliness of the Financial Conduct Authority's anti-money laundering / counter-terrorist financing registration regime for crypto asset businesses.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK is committed to having a robust AML regime for cryptoassets which will help to bolster confidence in the UK as a safe and reputable place to start and grow a cryptoasset business.
On 10 January 2020, the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptoassets firms. Due to the complexity and standard of applications received, the FCA was not able to process and register all applications by the 10 January 2021 deadline. A significant number of firms have failed to implement appropriately robust AML control frameworks, and to employ fit and proper personnel.
On 16 December 2020 the FCA announced that it was establishing a ‘Temporary Registration Regime’, under which relevant firms are eligible to continue trading pending a decision. This is due to expire on 9 July 2021.
As of 24 May 2021, 5 cryptoasset businesses have received registration from the FCA since 10 January 2020. Of the firms assessed to date over 90% have withdrawn their application following FCA intervention. There are 167 cryptoasset businesses with outstanding applications for AML/CTF registration with the FCA. 77 new cryptoasset businesses have applications pending full assessment.
On 7 January HM Treasury published a consultation on the broader regulatory treatment of cryptoassets, with a focus on cryptoassets known as stablecoins. It also included a call for evidence on the use of Distributed Ledger Technology (DLT) in financial markets. This consultation has now closed. The government is processing responses and will outline next steps in due course. Any future regulatory regime for cryptoassets set out by the Government in light of this consultation will aim to balance the potential risk to consumers with the ambition to stimulate competition and innovation in the industry.
HM Treasury officials are in regular contact with the FCA, as well as individual firms, industry groups and associations and consumer facing organisations to listen to their concerns on the full range of financial services related issues including cryptoassets.
Asked by: Philip Davies (Conservative - Shipley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the effectiveness of the Financial Conduct Authority's anti-money laundering / counter-terrorist financing registration regime for crypto asset businesses.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK is committed to having a robust AML regime for cryptoassets which will help to bolster confidence in the UK as a safe and reputable place to start and grow a cryptoasset business.
On 10 January 2020, the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptoassets firms. Due to the complexity and standard of applications received, the FCA was not able to process and register all applications by the 10 January 2021 deadline. A significant number of firms have failed to implement appropriately robust AML control frameworks, and to employ fit and proper personnel.
On 16 December 2020 the FCA announced that it was establishing a ‘Temporary Registration Regime’, under which relevant firms are eligible to continue trading pending a decision. This is due to expire on 9 July 2021.
As of 24 May 2021, 5 cryptoasset businesses have received registration from the FCA since 10 January 2020. Of the firms assessed to date over 90% have withdrawn their application following FCA intervention. There are 167 cryptoasset businesses with outstanding applications for AML/CTF registration with the FCA. 77 new cryptoasset businesses have applications pending full assessment.
On 7 January HM Treasury published a consultation on the broader regulatory treatment of cryptoassets, with a focus on cryptoassets known as stablecoins. It also included a call for evidence on the use of Distributed Ledger Technology (DLT) in financial markets. This consultation has now closed. The government is processing responses and will outline next steps in due course. Any future regulatory regime for cryptoassets set out by the Government in light of this consultation will aim to balance the potential risk to consumers with the ambition to stimulate competition and innovation in the industry.
HM Treasury officials are in regular contact with the FCA, as well as individual firms, industry groups and associations and consumer facing organisations to listen to their concerns on the full range of financial services related issues including cryptoassets.
Asked by: Philip Davies (Conservative - Shipley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with consumer groups on the anti-money laundering / counter-terrorist financing registration regime for crypto asset businesses.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK is committed to having a robust AML regime for cryptoassets which will help to bolster confidence in the UK as a safe and reputable place to start and grow a cryptoasset business.
On 10 January 2020, the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptoassets firms. Due to the complexity and standard of applications received, the FCA was not able to process and register all applications by the 10 January 2021 deadline. A significant number of firms have failed to implement appropriately robust AML control frameworks, and to employ fit and proper personnel.
On 16 December 2020 the FCA announced that it was establishing a ‘Temporary Registration Regime’, under which relevant firms are eligible to continue trading pending a decision. This is due to expire on 9 July 2021.
As of 24 May 2021, 5 cryptoasset businesses have received registration from the FCA since 10 January 2020. Of the firms assessed to date over 90% have withdrawn their application following FCA intervention. There are 167 cryptoasset businesses with outstanding applications for AML/CTF registration with the FCA. 77 new cryptoasset businesses have applications pending full assessment.
On 7 January HM Treasury published a consultation on the broader regulatory treatment of cryptoassets, with a focus on cryptoassets known as stablecoins. It also included a call for evidence on the use of Distributed Ledger Technology (DLT) in financial markets. This consultation has now closed. The government is processing responses and will outline next steps in due course. Any future regulatory regime for cryptoassets set out by the Government in light of this consultation will aim to balance the potential risk to consumers with the ambition to stimulate competition and innovation in the industry.
HM Treasury officials are in regular contact with the FCA, as well as individual firms, industry groups and associations and consumer facing organisations to listen to their concerns on the full range of financial services related issues including cryptoassets.
Asked by: Philip Davies (Conservative - Shipley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the crypto asset industry on the anti-money laundering / counter-terrorist financing registration regime for crypto asset businesses.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK is committed to having a robust AML regime for cryptoassets which will help to bolster confidence in the UK as a safe and reputable place to start and grow a cryptoasset business.
On 10 January 2020, the FCA became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptoassets firms. Due to the complexity and standard of applications received, the FCA was not able to process and register all applications by the 10 January 2021 deadline. A significant number of firms have failed to implement appropriately robust AML control frameworks, and to employ fit and proper personnel.
On 16 December 2020 the FCA announced that it was establishing a ‘Temporary Registration Regime’, under which relevant firms are eligible to continue trading pending a decision. This is due to expire on 9 July 2021.
As of 24 May 2021, 5 cryptoasset businesses have received registration from the FCA since 10 January 2020. Of the firms assessed to date over 90% have withdrawn their application following FCA intervention. There are 167 cryptoasset businesses with outstanding applications for AML/CTF registration with the FCA. 77 new cryptoasset businesses have applications pending full assessment.
On 7 January HM Treasury published a consultation on the broader regulatory treatment of cryptoassets, with a focus on cryptoassets known as stablecoins. It also included a call for evidence on the use of Distributed Ledger Technology (DLT) in financial markets. This consultation has now closed. The government is processing responses and will outline next steps in due course. Any future regulatory regime for cryptoassets set out by the Government in light of this consultation will aim to balance the potential risk to consumers with the ambition to stimulate competition and innovation in the industry.
HM Treasury officials are in regular contact with the FCA, as well as individual firms, industry groups and associations and consumer facing organisations to listen to their concerns on the full range of financial services related issues including cryptoassets.