The regulation of cryptoassets and cryptocurrencies

The UK Treasury Committee has launched an inquiry into digital currencies in order to examine their role in the UK, and to understand the risks and benefits that digital currencies may bring to consumers, businesses and the Government. The paper discusses the potential impact of distributive ledger technology (DLT) on financial institutions and financial infrastructure. Finally, it evaluates the regulatory approach to digital currencies from the Government, the Financial Conduct Authority (FCA) and the Bank of England. The paper also helps understand how regulation could be balanced to provide adequate protection and safeguards for consumers and businesses without placing barriers on innovation.