The UK Treasury Committee has announced an investigation into risks and benefits of cryptocurrencies and the technology behind them, the BBC reports.
The inquiry will examine the role of digital currencies in the UK, including the opportunities and risks that digital currencies may generate for consumers, businesses, and the Government.
“People are becoming increasingly aware of cryptocurrencies such as Bitcoin (Bitcoin), but they may not be aware that they are currently unregulated in the UK, and that there is no protection for individual investors,” Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee said.
But she also wants to strike a balance between protection and regulation, not hindering the blockchain technology behind cryptocurrencies.
"As part of the inquiry, we will explore how this can be achieved," she said.
MP Alison McGovern, Member of the Treasury Committee, said:
"This inquiry comes at the right time, as regulators and Governments wrestle with recent events in cryptocurrency markets. New technology offers the economy potential gains, but as recently demonstrated, it may also bring substantial risks.”
She said it is time that Whitehall and Westminster understood cryptocurrency better, and thought more clearly about the policy environment for blockchain technology.
The committee is yet to set a date for its first session.