UK lawmakers open inquiry into crypto risks

UK lawmakers have launched an inquiry into the risks and opportunities cryptoassets pose to businesses and consumers.

The July 13 request for evidence from companies, crypto industry players, regulators and consumers comes amid a slump in prices, a so-called “crypto winter,” that has seen the largest cryptocurrency, bitcoin, has lost 70% of its value since November.

Market volatility has also seen cryptocurrency broker Voyager Digital file for bankruptcy, while companies such as Vauld suspended withdrawals and Coinbase and others cut staff.

The wide-ranging inquiry by MPs on the Treasury Committee will examine questions about the potential of cryptocurrencies to replace fiat currency, the extent to which startups could benefit, the impacts of blockchain technology and how the sector is being regulated in other jurisdictions

Mel Stride, chairman of the Treasury Committee, noted in a document calling for evidence that crypto assets “have the potential to bring new and innovative changes to the UK financial system”.

“However, there are also significant concerns about its use to launder funds, purchase illegal products and evade international sanctions,” he added. “In recent months, the value of most cryptoassets has fallen dramatically. As a committee, we will investigate the opportunities and risks presented by crypto, where additional regulation may be required, and the lessons the government can learn from others countries”.

Submissions must be submitted by September 12th.

To contact the author of this story with comments or news, email Penny Sukhraj


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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!