Phoenix Community Capital case shines light on UK’s lobbying problem
For more than a decade, those worried about the reputation of parliament have warned that all-party parliamentary groups (APPGs) can be a problem.
Their supporters say they are a place for like-minded parliamentarians to discuss topics of special interest. But despite their unofficial nature, and with no formal role in the legislative process, APPGs can be a magnet for those who want to get close to MPs and peers – or to pretend that they are for the sake of polishing their reputations.
This means that a number of lobbying and spying scandals have touched APPGs in recent times, including the lawyer heavily involved in the Chinese in Britain APPG who is accused accused by security services of being an agent of Beijing.
The case of Phoenix Community Capital is an example of how a company sought to gain credibility for its project by associating itself with APPGs and parliamentarians.
Within the cryptocurrency sector, the attempt to persuade lawmakers that the unregulated industry should be taken seriously is a growing trend. Companies and lobbying firms have poured an estimated £250,000 into APPGs with links to the controversial new financial industry in the past five years.
MPs say the scale of lobbying by firms linked to crypto and the blockchain technology behind it has increased exponentially in recent times as the industry comes under scrutiny in the wake of the collapse of FTX in the US and pressure in the UK for some degree of regulation.
Over the past year, the value of many cryptocurrencies and associated companies has plummeted, with small-scale investors often left counting the cost. With more than 2 million people invested in crypto in the UK, the government is now making moves to regulate the sector, but sceptics
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