| 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 Cryptoasset Taskforce
is responsible for assessing developments in the cryptoasset market, and deciding
what, if any, regulation is required in response.</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; 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 its response to this
consultation shortly. On 18 January 2022, the Government announced its intention to
legislate later this year to bring certain cryptoassets into the scope of financial
promotions regulation, requiring them to be fair, clear and not misleading. This is
aimed at improving consumers’ understanding of the risks and benefits associated with
cryptoasset purchases, and ensuring that cryptoasset promotions are held to the same
high standards as broader financial services products.</p><p> </p><p>Consumer research
conducted by the FCA in 2021 estimated that 2.3 million people in the UK currently
hold cryptoassets. The FCA has announced plans for an £11 million digital marketing
campaign to educate consumers on the risks associated with certain high-risk investments,
including cryptoassets.</p><p> </p><p>Profits from trading in and gains from disposing
of cryptoassets are taxed in the same way and at the same rate as those from other
assets. HMRC’s Cryptoassets Manual, one the most detailed publications from any tax
administration, explains the tax consequences of different types of transactions involving cryptoassets for
both businesses accepting them and individuals using them.</p><p> </p><p>Cryptoassets
are unregulated; this means they are not subject to consumer protection regulation
and investors will not have recourse to the Financial Ombudsman Service, or the Financial
Services Compensation Scheme.</p><p> </p><p>The Government does not currently plan
to create a new regulator for cryptoassets. The Government launched a consultation
on its regulatory approach to cryptoassets and stablecoins on 7 January 2021. It proposed
new regulatory responsibilities for the FCA, Bank of England and Payment Systems Regulator
(PSR).</p>
|
|
