A U.K. parliamentary committee has launched an inquiry into dangers associated with crypto assets as the government pushes to turn the country into a global crypto-hub.
The UK’s push to become a future crypto hub began under former Chancellor of the Exchequer Rishi Sunak. (Photo: HM Treasury, Flickr, License)The Treasury Committee on Wednesday called for written evidence from experts and stakeholders to examine “the opportunities and risks” cryptocurrency and other digital assets pose to consumers and businesses, as well as how regulation might best protect investors.
“Crypto-assets have the potential to bring new and innovative changes to the U.K. financial system, the economy and broader society,” said MP Mel Stride, chairman of the committee.
“However, there are also significant concerns around their use to launder funds, purchase illegal products, and evade international sanctions,” he added.
Earlier in April, the government announced plans for a new ‘stablecoin’ regulatory framework, paving the way for use of these digital currencies as a recognised form of payment.
Unlike other forms of cryptocurrency, which can fluctuate wildly in value, stablecoins aim to preserve price stability by pegging their value to some external reference, such as the U.S. dollar or the price of gold.
However, stablecoins aren’t entirely insulated from market volatility. The recent crypto-crash, which began in May and is since thought to have caused more than $300…
