The UK government is going to research the possible risks that cryptocurrencies like Bitcoin pose to the future of the fintech industry. This was declared by John Glen, finance minister of the said state, on the eve of the British Fintech Conference according to Reuters.
The great growth in quantity and relevance of the cryptomarket has governments worried about the feasibility of these as investment options and its use as alternative currencies. When asked about the role and the considerations that the UK will have about cryptocurrencies, he stated:
In our upcoming fintech strategy, the government will announce further work with the Financial Conduct Authority and the Bank of England to consider these issues in more detail”
The UK is one of the largest financial tech hubs in the world, and it has remained somewhat on the fence when it comes to regulating trade and cryptocurrency market. This has contributed to the boom of the sector in the country. Nonetheless, some regulation is good to have clear rules; and it is expected that some light touch rules would be established in the near future.
Everyone is expecting new developments about regulation these days, more with the upcoming meeting of the finance sector of the G20 in Argentina. But they have sent contradicting signals. Some reports state that the G20 is effectively backing down on crypto-regulation, based on declarations of Marc Carney, head of the Financial Stability Board; but other reports affirm that cryptos would be classified as assets by the group, a thing that is backed by a draft of a document to be signed at the upcoming meeting.
Being Marc Carney the governor of the Bank of London, and head of the Financial Stability Board we should expect some action going along with his recent declarations. The UK is drafting his own regulations independently of the European Union, because of the Brexit.