To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of using new and innovative methods to generate economic growth and revenue, in particular in relation to cryptocurrency such as bitcoin, in the context of the current economic climate.

The government’s ambition is to make the UK a global hub for cryptoasset technology and investment. In April 2022, the government set out a number of reforms which will see the regulation and aspects of tax treatment of cryptoassets evolve. This included confirming the intention to regulate cryptoassets known as stablecoins and to introduce a ‘financial market infrastructure sandbox’ to enable firms to experiment and innovate. The government will consult on its approach to regulating a broader set of investment-related cryptoasset activities in due course.

The UK is committed to creating a regulatory environment in which firms can innovate, while crucially maintaining financial stability and regulatory standards so that people and businesses can use new technologies both reliably and safely. Recent events in the crypto market reinforce the case for timely, clear and effective regulation.

These measures will help to ensure firms can invest, innovate and scale up in this country.