The joint HM Treasury-Financial Conduct Authority and Bank of England Cryptoassets Taskforce report sets out the UK’s approach to cryptoassets and distributed ledger technology in financial services.
Cryptoassets and the distributed ledger technology (DLT) that underpins them have attracted significant attention globally. DLT has the potential to deliver substantial benefits, both in financial services and other sectors. Cryptoassets are one application of DLT, and whilst the UK market has grown, it remains small compared to some other jurisdictions, with many cryptoasset firms based outside the UK. Mainstream financial services firms are taking first steps into the market, and a small derivatives market is developing. At the same time, there is growing evidence of harm to consumers and markets.
It is against this backdrop that the Chancellor of the Exchequer launched the Cryptoassets Taskforce, consisting of HM Treasury, the Financial Conduct Authority and the Bank of England in March 2018.