Cryptocurrencies don’t pose a risk to the UK economy, but appropriate regulation is needed according to Britain’s City minister John Glen.
Speaking at the Treasury’s International Fintech conference on Thursday, Glen, who was appointed Economic Secretary to the Treasury and City Minister in Janauary, said any regulation of the sector will be proportionate according to Buinsess Insider.
At the conference, he said: “We are seeing great excitement, some wariness, and also I think some misunderstandings. We remain agnostic and are engaged in trying to find the right narrative and the right level of regulation if that’s appropriate.”
With Cryptocurenice exploding in poropularity, the issue is, how are they regulated or not based on the opportunities and risks that may exist in the new technology, he added.
“Regulation could be an enabler of a stable, flourishing cryptocurrency exchange in the City of London,” Glenn said.
Last week, the Treasury Committee launched an inquiry into unregulated digital currencies and distributed ledger technology.
Chancellor Philip Hammond announced a new cryptocurrency “task force”, featuring representatives from the Treasury, the Bank of England, and the Financial Conduct Authority, the UK’s regulator.
The committee said it will look into the role of digital currencies in the UK, including the opportunities and risks that digital currencies may bring to consumers, businesses, and the government.
While earlier this month, seven cryptocurrency companies formed a UK cryptocurrency trade body, bringing the first self-regulation to the industry. CryptoUK will look to promote the development and recognition of digital currency technologies in the UK. The trade association said it will also educate politicians and regulators about the industry, whilst also working with them to develop an appropriate operating framework for the UK. The trade body CryptoUK was formed by BlockEx; CEX.IO; Coinbase; CoinShares; CommerceBlock; CryptoCompare; and eToro.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
