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1173415

	registered interest
	date	27/01/2020
	answering body	Treasury
	answering dept id	14
	answering dept short name	Treasury
	answering dept sort name	Treasury
	hansard heading	Cryptocurrencies
	house id	1
	legislature	25259 pref label House of Commons
	question text	To ask the Chancellor of the Exchequer, what progress he has made on creating an economic environment in which digital currencies can be developed.
	tabling member constituency	Windsor
	tabling member printed	Adam Afriyie
	uin	8202
	answer	answer is ministerial correction date of answer 04/02/2020 answer text <p>The UK’s approach to cryptoassets was outlined in the 2018 Cryptoassets Taskforce report, and in July last year the FCA set out its position in relation to the regulatory perimeter in this space. The government and regulators have since taken steps to continue encouraging responsible innovation in this area, while also mitigating risks to consumers and markets.</p><p>For instance, this January the Treasury transposed the cryptoasset provisions set out in the EU Fifth Anti-Money Laundering Directive (5MLD). This will combat the risk of cryptoassets being used for illicit activity, in support of the government’s aims for the sector.</p><p>More broadly, the government is committed to creating an environment where tech businesses can thrive by investing in areas such as talent, cutting-edge research and growth finance. Venture capital investment in the UK tech sector grew by 44 per cent in 2019, from £7.1bn to £10.1bn. This was a faster growth rate than both the US and China.</p><p>The financial regulators continue to provide a platform that facilitates innovation in this space. For example, the Financial Conduct Authority has accepted a significant number of DLT-based projects into its Regulatory Sandbox to help enable the adoption of this technology to deliver better financial services with appropriate consumer safeguards.</p> answering member constituency Salisbury answering member printed John Glen question first answered 04/02/2020 11:51:13 answering member 4051 label Biography information for John Glen
	tabling member	1586 label Biography information for Adam Afriyie

1302457

	registered interest
	date	15/03/2021
	answering body	Treasury
	answering dept id	14
	answering dept short name	Treasury
	answering dept sort name	Treasury
	hansard heading	Cryptocurrencies
	house id	1
	legislature	25259 pref label House of Commons
	question text	To ask the Chancellor of the Exchequer, whether the energy being using to mine cryptocurrency will be discussed at COP26; and whether further regulation on that matter will be on the COP26 agenda.
	tabling member constituency	North West Leicestershire
	tabling member printed	Andrew Bridgen
	uin	168929
	answer	answer is ministerial correction date of answer 23/03/2021 answer text <p>The Government’s private finance objective for the upcoming COP26 climate change forum is to ensure that every professional financial decision takes climate change into account. The recovery from COVID-19 will determine the mitigation and adaptation pathways for decades to come.</p><p> </p><p>The finance campaign will provide the conditions for a future that is genuinely greener, more resilient and more sustainable than the past. Action on finance underpins all the other COP campaigns: adaptation &amp; resilience, energy transition, nature and zero-emission vehicles. Without the right levels of finance, the rest is not possible.</p><p> </p><p>The Government has already taken actions to signal a commitment to green technology, including a pledge to make Taskforce on Climate-related Financial Disclosures (TCFD) aligned financial disclosures mandatory across the economy by 2025, making the UK the first G20 nation to make such a commitment.</p><p> </p><p>Additionally, the Government has committed to the implementation of a green taxonomy. This will allow us to accelerate our work towards a greener financial sector, by providing a common definition for environmentally sustainable economy activities</p><p>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.</p><p><strong> </strong></p> answering member constituency Salisbury answering member printed John Glen question first answered 23/03/2021 11:41:31 answering member 4051 label Biography information for John Glen
	tabling member	4133 label Biography information for Andrew Bridgen

1463696

	registered interest
	date	17/05/2022
	answering body	Treasury
	answering dept id	14
	answering dept short name	Treasury
	answering dept sort name	Treasury
	hansard heading	Cryptocurrencies
	house id	1
	legislature	25259 pref label House of Commons
	question text	To ask the Chancellor of the Exchequer, in addition to introducing stablecoin regulation, what other steps he plans to take to encourage cryptocurrency firms to (a) remain in and (b) return to the UK.
	tabling member constituency	Romford
	tabling member printed	Andrew Rosindell
	uin	3490
	answer	answer is ministerial correction date of answer 24/05/2022 answer text <p>At Fintech Week, the government set out the firm ambition to make Britain a global hub for cryptoasset technology and investment. We want to ensure firms can invest, innovate and scale up in this country. And we have announced a number of reforms which will see the regulation and aspects of tax treatment of cryptoassets evolve – our clear message to cryptoasset firms is that the UK is open for business.</p><p> </p><p>In addition to legislating to bring stablecoins into payments regulation, these include committing to consult on future regulation of a broader set of cryptoasset activities later this year; setting up a ministerial-chaired Cryptoasset Engagement Group, bringing together key figures in industry; working with the Royal Mint to create a Non-Fungible Token; and exploring ways of enhancing the competitiveness of the UK tax system to encourage further development of the cryptoasset market in the UK.</p><p> </p><p>These commitments are in line with our objectives to create a regulatory environment in which firms can innovate, while crucially maintaining financial stability and regulatory standards so that people can use new technologies both reliably and safely.</p><p> </p> answering member constituency Salisbury answering member printed John Glen question first answered 24/05/2022 09:01:51 answering member 4051 label Biography information for John Glen
	tabling member	1447 label Biography information for Andrew Rosindell

1289390

	registered interest
	date	24/02/2021
	answering body	Treasury
	answering dept id	14
	answering dept short name	Treasury
	answering dept sort name	Treasury
	hansard heading	Cryptocurrencies
	house id	2
	legislature	25277 pref label House of Lords
	question text	To ask Her Majesty's Government whether they plan to consider the energy use of cryptocurrencies as part of their preparations for COP26 and other international meetings on climate change during 2021; and what plans they have to investigate how cryptocurrencies affect their requirements for public and private sector organisations to meet climate change targets.
	tabling member printed	Baroness Altmann
	uin	HL13642
	answer	answer is ministerial correction date of answer 10/03/2021 answer text <p>The Government has been monitoring developments within the cryptoasset industry, including rising energy usage.</p><p> </p><p>The Cryptoasset Taskforce, comprising HM Treasury, the FCA, and the Bank of England, explores the impact of cryptoassets and assesses what, if any, regulation is required in response.</p><p> </p><p>The Government has already taken actions to signal a commitment to green technology, including a pledge to make Taskforce on Climate-related Financial Disclosures (TCFD) aligned financial disclosures mandatory across the economy by 2025, making the UK the first G20 nation to make such a commitment.</p><p> </p><p>Additionally, the Government has committed to the implementation of a green taxonomy. This will allow us to accelerate our work towards a greener financial sector, by providing a common definition for environmentally sustainable economy activities.</p><p>The Government’s objective for the upcoming COP26 climate change forum is to ensure that every professional financial decision takes climate change into account. The recovery from COVID-19 will determine the mitigation and adaptation pathways for decades to come. We must all do our part – we are working with the financial services sector, international financial institutions, central banks, regulators, and finance ministries to unlock rapid action at scale.</p><p> </p><p>The finance campaign will provide the conditions for a future that is genuinely greener, more resilient and more sustainable than the past. Action on finance underpins all the other COP campaigns: adaptation &amp; resilience, energy transition, nature and zero-emission vehicles. Without the right levels of finance, the rest is not possible.</p><p> </p><p>The Government stands ready to respond to emerging risks or changes in the market and will continue to monitor how cryptoassets are being used in the UK.</p> answering member printed Lord Agnew of Oulton question first answered 10/03/2021 12:54:59 answering member 4689 label Biography information for Lord Agnew of Oulton
	tabling member	4533 label Biography information for Baroness Altmann

1417802

	registered interest
	date	28/01/2022
	answering body	Treasury
	answering dept id	14
	answering dept short name	Treasury
	answering dept sort name	Treasury
	hansard heading	Cryptocurrencies
	house id	2
	legislature	25277 pref label House of Lords
	question text	To ask Her Majesty's Government whether they have made any recent assessment of the future of digital currencies; and whether they have any plans to trade digital currencies.
	tabling member printed	Baroness Kennedy of Cradley
	uin	HL5765
	answer	answer is ministerial correction date of answer 07/02/2022 answer text <p>Certain cryptoassets, offering new ways to transact and invest, are part of a trend of rapid innovation in financial technology. However, these developments also present new challenges and risks – including risks to consumers and to financial system. The Government established a Cryptoassets Taskforce in 2018, consisting of HM Treasury, the Bank of England and the Financial Conduct Authority (FCA).</p><p> </p><p>HM Treasury and UK authorities have taken a series of actions to support innovation while mitigating risks to stability and market integrity. These include launching a new anti-money laundering and counter-terrorist financing regime for cryptoassets in 2020; confirming an intention to legislate to regulate cryptoasset promotions, ensuring they are fair, clear and not misleading; and consulting on a proposal to ensure cryptoassets known as ‘stablecoins’ meet the same high standards expected of other payment methods. The Government will issue a response to this consultation shortly. The Government is carefully considering what, if any, regulation might need to follow as the cryptoasset market grows and evolves in the UK. The Government has adopted a staged and proportionate approach to cryptoassets regulation, which is sensitive to risks posed, and responsive to new developments in the market.</p><p> </p><p>The UK, like many countries globally, is actively exploring the potential role of central bank digital currency (CBDC): an electronic form of central bank money that could be used by households and businesses to make payments. The Government has taken several actions to signal its commitment to leading the global conversation on the opportunities and risks of a potential CBDC, including: the creation of a new Taskforce led by HM Treasury and the Bank of England to lead exploration of a CBDC, with separate forums to engage civil society and technology experts; a public commitment to issue a joint consultation on the use cases for a UK CBDC in 2022, followed by the publication of a technical specification; and, at the international level, using our G7 Presidency last year to develop and agree a set of public policy principles for CBDC, which are intended to support and inform exploration of CBDCs in the G7 and beyond.</p><p>The Government and the Bank of England have not yet made a decision on whether to introduce a central bank digital currency in the UK, and will engage widely with stakeholders on the benefits, risks and practicalities of doing so.</p><p>The Government has not set out any proposals to trade cryptoassets or other digital currencies.</p> answering member printed Baroness Penn question first answered 07/02/2022 17:19:35 answering member 4726 label Biography information for Baroness Penn
	tabling member	4303 label Biography information for Baroness Kennedy of Cradley

1471263

	registered interest
	date	16/06/2022
	answering body	Treasury
	answering dept id	14
	answering dept short name	Treasury
	answering dept sort name	Treasury
	hansard heading	Cryptocurrencies
	house id	2
	legislature	25277 pref label House of Lords
	question text	To ask Her Majesty's Government what assessment they have made of the (1) safety, and (2) security, of cryptocurrencies.
	tabling member printed	Baroness Kennedy of Cradley
	uin	HL1036
	answer	answer is ministerial correction date of answer 27/06/2022 answer text <p>In April the Government announced a number of specific reforms to strengthen cryptoasset regulation, including a commitment to bring stablecoins into payments regulation, and to consult on a wider cryptoasset regulatory regime later this year. The Government has also announced forthcoming legislation which, along with supportive Financial Conduct Authority (FCA) rules, will regulate in-scope cryptoasset financial promotions, requiring them to be fair, clear and not misleading for consumers. The Government has taken action to mitigate the illicit finance risks associated with cryptoassets. All cryptoasset firms in the UK must now be registered for supervision by the Financial Conduct Authority. As a part of this process, cryptoasset firms must demonstrate systems, controls, policies and procedures adequate to deal with the particular risks of the cryptoasset market and any officers, managers and beneficial owners must be fit and proper.</p><p> </p><p>These commitments are in line with the Government’s objectives to create a regulatory environment in which firms can innovate, while crucially maintaining financial stability and regulatory standards so that people can use new technologies both reliably and safely. The Cryptoasset Taskforce – HMT, the Bank of England, and the FCA – continues to monitor ongoing development in cryptoasset markets closely.</p><p> </p><p>Volatility is a characteristic of certain cryptoassets. The FCA and Bank of England have warned that cryptoassets are high risk investments, and that investors should be prepared to lose all of their money.</p><p> </p><p>The Bank of England’s Financial Policy Committee (FPC) has recently noted that direct risks to the stability of the UK financial system from cryptoassets are limited, and that crypto technologies are growing and becoming more interconnected with the core financial system.</p> answering member printed Baroness Penn question first answered 27/06/2022 16:14:17 answering member 4726 label Biography information for Baroness Penn
	tabling member	4303 label Biography information for Baroness Kennedy of Cradley

1310200

	registered interest
	date	19/04/2021
	answering body	Treasury
	answering dept id	14
	answering dept short name	Treasury
	answering dept sort name	Treasury
	hansard heading	Cryptocurrencies
	house id	1
	legislature	25259 pref label House of Commons
	question text	To ask the Chancellor of the Exchequer, what progress has been made on the Government’s consultation on cryptocurrencies; and what assessment he has made of the adequacy of the scope of that consultation.
	tabling member constituency	Warrington North
	tabling member printed	Charlotte Nichols
	uin	183307
	answer	answer is ministerial correction date of answer 26/04/2021 answer text <p>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 reviewing responses and will outline next steps in due course.</p><p> </p><p>The Government’s near-term priority is to ensure the framework supports the safe use of stablecoins. The Government continues to actively monitor emerging risks as this market continues to mature and stands ready to take further regulatory action if required.</p><p> </p><p>The Government also issued a consultation last year on a proposal to bring certain cryptoassets 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 apply to the financial services industry. The consultation is now closed, and the Government will be publishing its response in due course.</p><p> </p> answering member constituency Salisbury answering member printed John Glen question first answered 26/04/2021 09:04:09 answering member 4051 label Biography information for John Glen
	tabling member	4799 label Biography information for Charlotte Nichols

1329759

	registered interest
	date	04/06/2021
	answering body	Treasury
	answering dept id	14
	answering dept short name	Treasury
	answering dept sort name	Treasury
	hansard heading	Cryptocurrencies
	house id	1
	legislature	25259 pref label House of Commons
	question text	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.
	tabling member constituency	Warrington North
	tabling member printed	Charlotte Nichols
	uin	10689
	answer	answer is ministerial correction date of answer 10/06/2021 answer text <p>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.</p><p> </p><p>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.</p><p> </p><p>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.</p><p> </p><p>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.</p><p> </p><p>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.</p><p> </p><p>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.</p><p> </p><p>The Government continues to actively monitor emerging risks as this market continues to mature and stands ready to take further regulatory action if required.</p> answering member constituency Salisbury answering member printed John Glen question first answered 10/06/2021 08:58:03 answering member 4051 label Biography information for John Glen
	tabling member	4799 label Biography information for Charlotte Nichols

1350531

	registered interest
	date	22/07/2021
	answering body	Treasury
	answering dept id	14
	answering dept short name	Treasury
	answering dept sort name	Treasury
	hansard heading	Cryptocurrencies
	house id	1
	legislature	25259 pref label House of Commons
	question text	To ask the Chancellor of the Exchequer, whether the Government has made an assessment of the potential merits of introducing a sterling- based stable coin in the UK.
	tabling member constituency	Shrewsbury and Atcham
	tabling member printed	Daniel Kawczynski
	uin	37102
	answer	answer is ministerial correction date of answer 06/09/2021 answer text <p>The Government launched a consultation on its regulatory approach to cryptoassets and stablecoins on 7 January. This set out the view that stablecoins, which seek to stabilise their value, could be used as widespread means of payment and potentially deliver improvements in cross-border transactions. At the same time, depending on scale and nature of use, these developments could pose similar financial stability and consumer risks as traditional regulated payment systems.</p><p> </p><p>The Government’s proposed approach would make sure stablecoins meet the same high standards we expect of other payment methods. The Government is considering 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.</p><p> </p><p>Alongside this, the UK, like many countries globally, is actively exploring the potential role of central bank digital currencies: an electronic form of central bank money that could be used by households and businesses to make payments. The Bank of England published a discussion paper in March 2020, which considered the possibility of a retail central bank digital currency.</p><p /><p>At Fintech Week 2021, the Chancellor announced a new Taskforce led by HM Treasury and the Bank of England to lead the UK’s exploration of a central bank digital currency, with separate forums to engage civil society and technology experts. The Taskforce aims to ensure a strategic approach is adopted between the UK authorities as they explore a central bank digital currency, in line with their statutory objectives, and to promote close coordination between them. The Government and the Bank of England have not yet made a decision on whether to introduce a central bank digital currency in the UK, and will engage widely with stakeholders on the benefits, risks and practicalities of doing so.</p> answering member constituency Salisbury answering member printed John Glen question first answered 06/09/2021 12:33:13 answering member 4051 label Biography information for John Glen
	tabling member	1566 label Biography information for Daniel Kawczynski

1351205

	registered interest
	date	18/08/2021
	answering body	Treasury
	answering dept id	14
	answering dept short name	Treasury
	answering dept sort name	Treasury
	hansard heading	Cryptocurrencies
	house id	1
	legislature	25259 pref label House of Commons
	question text	To ask the Chancellor of the Exchequer, what estimate he has made of the potential value of Capital Gains Tax liability owed by UK residents in respect of Bitcoin trading and Decentralised Finance assets for each tax year from 2013-14 to date; what discussions he has had with representatives of the (a) Bank of England, (b) Prudential Regulation Authority (PRA) and (c) Financial Conduct Authority (FCA) on the potential merits of introducing a sterling-based cryptocurrency; what assessment he has taken of the potential effect of Bitcoin trading and Decentralised Finance on Money Supply measurements (i) M1, (ii) M2 and (iii) M3 and how that effect is measured; what assessment he has made for the implications of his Department’s policies on how the (A) PRA and (B) FCA will manage and control the Decentralised Finance transfer mechanisms in respect of the potential flow of assets and cash leaving the UK instantly; whether he plans to review the FCA’s regulatory (I) mechanisms and (II) performance in enforcing the banning of sales of cryptoasset derivatives to retail consumers; whether the FCA has introduced an authorisation and registration scheme for cryptoasset derivatives; what assessment he has made of the potential effect of the time taken to register cryptoasset derivatives with the FCA; what steps he is taking to ensure tax deriving from Bitcoin trading and Decentralised Finance is collected effectively; whether his Department has conducted an assessment of the potential merits of the FCA restricting UK banks from participating in the Decentralised Finance; what comparative assessment he has made of US and European financial firms’ participation in Decentralised Finance compared with that of UK firms; and for what reasons Euro clearing of financial instruments is moving out of the City of London.
	tabling member constituency	Shrewsbury and Atcham
	tabling member printed	Daniel Kawczynski
	uin	40791
	answer	answer is ministerial correction date of answer 06/09/2021 answer text <p>No estimate has been made on the potential value of capital gains tax (CGT) that are due on gains from cryptoassets held as investments or any tax liabilities arising from decentralised finance (also known as DeFi). The self-assessment form does not currently separate capital gains made on cryptoassets from other assets. As a result, a reliable estimate for CGT due from cryptoassets would only be available at a disproportionate cost.</p><p> </p><p>The recently released cryptoassets manual, one the most detailed publications from any tax administration, explains the tax consequences of different types of transactions involving cryptoassets for both business accepting them as well as individuals using them. HMRC has taken action, including using powers provided by Parliament to gather data, to identify and investigate those that have failed to declare their tax liabilities.</p><p> </p><p>Regarding the possible merits of a sterling-based stablecoin, I refer the Honourable Gentleman to the answer given to PQ UIN 37102.</p><p> </p><p>On the issue of money supply, Bitcoin trading or decentralised finance will need to become a significant source of lending to the real economy in the UK before they have a notable impact on money supply measurements.</p><p> </p><p>Regarding the Financial Conduct Authority (FCA) and the Prudential Regulation Authority’s (PRA) role with respect to decentralised finance, I refer the Honourable Gentleman to the answer given to PQ UIN 37103.</p><p> </p><p>With regards to the FCA’s cryptoasset derivatives ban for retail consumers, the FCA stated that it found these products to be ill-suited for retail consumers due to potential harms, including the high risk of suffering losses. The FCA has noted that it will keep this prohibition under review. The FCA is an independent body and its decision to take the ban forward after consultation is based on powers granted to the FCA under statute, pursuant to the FCA’s objectives which include protecting consumers, enhancing market integrity and promoting competition.</p><p> </p><p>Regarding the possible merits of the FCA restricting UK banks’ access to decentralised finance, the FCA is an independent regulator, and considers the risks of banks engaging in decentralised finance as one of the many risks it considers. Most decentralised finance activities are not regulated in the UK. Accordingly, the Government does not have accurate information on the number of entities operating in the UK in comparison to the EU and the US.</p><p> </p><p>On the issue of clearing, the EU has granted a temporary equivalence decision to UK Central Counterparties (CCPs) which lasts until June 2022.</p><p>Therefore, without any further action by EU authorities, certain UK CCPs may need to begin offboarding EU clearing members by the end of March 2022 in order to be ready for equivalence expiring in June 2022.</p><p>However, letting equivalence expire in June next year would raise the cost of clearing for firms, particularly EU ones, and present significant financial stability risks. The Government therefore hopes that equivalence would not be allowed to expire in June 2022. As it stands, the Government has seen limited evidence of activity moving.</p> answering member constituency Salisbury answering member printed John Glen question first answered 06/09/2021 12:56:08 answering member 4051 label Biography information for John Glen
	tabling member	1566 label Biography information for Daniel Kawczynski