UK MPs tell Parliament that the UK could be a 'home' for cryptocurrencies

Matt Hancock said: “These innovations have the potential to disrupt finance in the same way social media disrupted communications or online shopping transformed retail.”

Matt Hancock, former Secretary of State for Health and Social Care and now UK MP, has urged the House of Commons to make the UK a “home” of cryptocurrencies.

Hancock, who has been an MP for West Suffolk since 2010, has resigned as health secretary after being drawn into controversy in mid-2021 over a breach of Covid-19 guidelines over an alleged extramarital affair. That said, his endorsement, while welcomed by the industry, may not be as prestigious as it once was.

Following his speech in the House of Commons on Jan. 27, Hancock took to Twitter to highlight the disruptive potential of cryptocurrencies and fintech, stating:

“The UK can be home to new innovations like fintech and cryptocurrencies. Done right, we can increase transparency and lead the way in new technologies that change the world.”

In his speech, he pointed to the benefits of cryptocurrency and fintech adoption in stimulating the economy and even reducing financial crime, and urged the government to “ensure” progressive policies in these areas.

“(Fintech and cryptocurrencies) can not only be an economic driver, but also help reduce fraud and financial crime because it brings transparency,” he said, adding, “These innovations have the potential to disrupt the financial industry, as Social media has disrupted communications, or online shopping has transformed retail.”

Hancock's remarks come just weeks after several MPs and members of the House of Lords joined forces to form a group on cryptocurrencies and digital assets, aimed at ensuring that upcoming industry regulation supports innovation, not stifles it.

The panel, chaired by SNP MP Lisa Cameron, noted before and after the panel’s formation: “We are at a pivotal moment for the industry, as global policymakers are now also reviewing their approach to cryptocurrencies and how they should be regulated. currency."

Earlier this week, former U.K. Chancellor of the Exchequer Philip Hammond said it was “frankly quite shocking” that the U.K. is lagging behind the European Union in providing clear regulation of the crypto space.

If the U.K. government fails to catch up in 2022 and is “significantly behind the curve” next year, top U.K.-based crypto and blockchain tech companies will seek to shift their headquarters to a more aggressive approach to cryptocurrencies, Hammond warned. Countries with friendly positions such as Germany, Switzerland and Monaco.