Crypto industry increases political influence with Westminster group

The British crypto lobby has reinforced its influence in Westminster with the establishment of a cross-party group of legislators, since politicians intensify their efforts to regulate the growing markets for digital assets on both sides of the Atlantic.

The Crypto and Digital Assets Group, which is made up of British MPs and members of the House of Lords, will work to ensure that new rules for the digital asset industry "support innovation", according to the SNP MP Lisa Cameron, which will be the chair of the group.

The group also promises to contribute to combating economic crime and consumer protection at a time when the supervisory authorities have repeatedly warned against the risks of crypto fraud and non -regulated companies. According to Chainalysis, frauds with cryptocurrencies cost $ 7.8 billion worldwide this year.

The establishment of the Westminster Group, which is supported by the Cryptouk Digital Property Association, takes step as regulatory authorities and politicians last year with the explosive growth of the crypto markets.

"We are in a crucial time for the sector, since global political decision -makers are now also checking their approach to crypto and how it should be regulated," said Cameron.

The view of new standards has led to energetic lobbying from crypto companies. US legislative proposals, such as the Senate's infrastructure law from last year, contained new tax registration obligations for crypto transactions, have attracted enemy lobbying of crypto companies, according to the Center for Responsive Politics, a US research group.

In the UK, supporters of the crypto industry have warned that the government is too slow to determine the traffic rules for the business with digital assets, which is at risk of displacing them abroad. The Financial Conduct Authority banned crypto derivatives for private investors and rejected crypto funds such as the Bitcoin ETFs introduced in the USA.

Philip Hammond, the former British Chancellor, who had registered as a consultant of the Copper crypto attitude group last autumn, said the FT that "Great Britain has not progressed as quickly as Switzerland, Singapore and even Germany" and that the state must accept financial innovations after Brexit.

The formation of the parliamentary crypta group follows a year of the efforts of Cryptouk behind the scenes to attract legislators for the advantages of digital assets for the British economy.

"Our main focus will be on education, education, education," said Ian Taylor, Executive Director of Cryptouk. "There is no real advocacy and education at this level around crypto-assets."

The trade association, which represents companies like Crypto.com to Etoro, will serve as a secretariat of the parliamentary group and, according to public documents, spend almost £ 50,000 this year to support the group.

At the top of the new group's agenda, it will be to examine the FCA's money laundering registration system for crypto companies as well as the results of two pending political consultations on crypto advertising and stable coins.

Cameron told the FT that the search for the "best protection of consumers" must also be a "top priority for governments and supervisory authorities". She said that the rules for the advertising and registration of crypto companies should be clear in order to protect consumers from losses and to give "British companies business security".

The new crypto group, which officially registered with Parliament last week, counts former digital economy Minister Ed Vaizey together with Tory Member Harriett Baldwin, a former JPMorgan Executive and Minister of Stadt.