UK Parliamentary Committee Recommends Cryptocurrency Regulation In The CountrySeptember 20, 2018 0 By Austin Patel
UK lawmakers have expressed the need to make the country a global Cryptocurrency center by following France in establishing laws to govern the sector. The parliamentarians said the Financial Conduct Authority (FCA) should be given more powers regulate the industry to enhance the development of a healthy Crypto environment. The latest news from London is an indicator that more countries around the world are seeing the potential of the revolutionary technology and are bracing to reap its benefits.
Need For Crypto Regulation
UK parliamentarians are of the opinion that the country should not be left behind in passing Cryptocurrency laws. Most European countries are slow to regulate the sector allowing other regions, especially Asia to play a leading role. France is already considering a law that will help in regulating ICOs in the country. The move is expected to attract more Crypto firms in the country.
The parliamentarians believe the role of regulating the sector should fall on the Financial Conduct Authority (FCA). Nevertheless, the current laws don’t give that regulator the power to act on Cryptocurrency projects in the country. The leaders are of the opinion that the country’s parliament should pass laws that give the agency the responsibility of regulating the Crypto sector. Such a move could enhance the growth of the Cryptofinance in the country.
The Report Refers To Cryptocurrencies As “Digital Assets” And Not “Currencies”
Despite the parliamentarians expressing an interest in the Crypto sector, they hold an opinion about the new currencies that is contrary to most Cryptocurrency campaigners. According to the politicians, the coins fail to meet the three functions of money namely a unit of account, a medium of exchange, and a store of value. Consequently, they view the Cryptocurrencies as “digital assets” and not as “currencies.”
Many Cryptocurrency enthusiasts believe that the currencies could be used to further financial exclusion especially in areas without bank access. However, in the report, the parliamentarians believe financial inclusion can be achieved by boosting the number of people with bank access. It’s clear that the legislators are somehow skeptic of this revolutionary technology.
Although it appears the parliamentarians are not yet aware of the enormous benefits of Cryptocurrencies, they are determined to turn the country into a global center of this technology. They believe that this can be attained by creating a stable regulated environment. Such a surrounding can give the investors and the public a chance to explore the industry help in enhancing its maturity.
Cryptocurrency Regulation Comes With Many Benefits
The Cryptocurrency sector is still in the early stages of development. Consequently, it has become more challenging for the authorities to create an enabling environment for the sector. Most regulations are mainly concerned with the need to protect consumers and prevent the use of the virtual currencies in illegal activities such as money laundering and financing terrorists.
Creating a Cryptofriendly environment is of huge benefits to the government, Crypto investors, and the public at large. Crypto industry is a highly profitable sector that can act as a source of government income through taxation. The sector is also allowing investors to create various projects and raise capital using the technology. The industry is creating job opportunities for the tech savvies in the population.