What has happened?

The first meeting of the UK’s new Cryptoassets Taskforce took place yesterday.

What does this mean?

According to a press release on the UK Treasury's website, in its inaugural meeting, the Taskforce agreed its objectives, including exploring the effect of cryptoassets, the potential benefits and challenges of the application of distributed ledger technology in financial services, and assessing what, if any, regulation is required in response.

The Taskforce, which was announced in April by the Chancellor of the Exchequer as part of the government’s Fintech Sector Strategy, is a central part of the government and financial regulators’ efforts to understand and engage with the implications of new technologies in financial services

Andrew Bailey, FCA Chief Executive, said:

"Cryptoassets have been an area of increasing interest for markets and regulators globally including the FCA. We look forward to working with our counterparts at the Bank of England and the Treasury as part of the taskforce to develop thinking and policy on cryptoassets."

Dave Ramsden, Deputy Governor of the Bank of England said:

"The technologies that underpin cryptoassets have the potential to deliver benefits both to the financial system and to the economy it serves. This taskforce will enable us to work closely with the Treasury and the FCA to explore how the opportunities posed by these technologies can be realised, while also tackling the risks arising from cryptoassets."

Katharine Braddick, Director General of Financial Services at HM Treasury, was also present.

What happens now?

The Taskforce will consider existing analysis by the government and regulators, as well as seek new views from trade bodies, academics, consumer groups and investor representatives.

it will also host a roundtable in July and publish a report in Q3 2018.