In the inquiry, the Committee will explore the role of crypto-assets in the UK, as well as the opportunities and risks they bring to consumers and businesses.

The Committee requests written evidence submissions which examine whether crypto currencies are likely to replace traditional currencies, what opportunities and risks the use of crypto-assets pose for individuals and the economy, and their impact on social inclusion.

MPs will also explore how regulation could be balanced to provide protection for consumers without stifling innovation.

Views on whether the Government and regulators are suitably equipped are welcomed, as are submissions discussing the effectiveness of recent regulation around advertising and money laundering in protecting consumers.

The Committee will seek to investigate whether regulation could benefit crypto-asset start-ups by improving consumer trust and resilience, and the potential impact of distributed ledger technology on financial institutions, including the Bank of England.

MPs are also interested in hearing from stakeholders and experts on how Governments and regulators in other countries are approaching crypto-assets, and what lessons the UK can learn from overseas.

Chair's comment

Commenting on the new inquiry, Rt. Hon. Mel Stride MP, Chair of the Treasury Committee, said:

“Crypto-assets have the potential to bring new and innovative changes to the UK financial system, the economy and broader society. However, there are also significant concerns around their use to launder funds, purchase illegal products, and evade international sanctions.

“In recent months, the value of most crypto-assets has fallen dramatically. As a Committee, we will be investigating the opportunities and risks that crypto presents, where additional regulation may be required, and the lessons the Government can learn from other countries.

“We look forward to receiving written evidence from experts and interested stakeholders on this important topic.”