UK Finance Committee wants strict rules for crypto businesses

British legislators have called on their colleagues to increase the level of regulation of cryptocurrencies in order to introduce an element of stability and order into a market that, in their opinion, most resembles the “Wild West”.

“Bitcoin and other crypto assets are in a space that resembles the Wild West,” said committee chair Nicky Morgan. “This unregulated industry poses a threat to honest investors.”

In a report on digital currencies released Wednesday, the Select Committee on Finance called for tough regulations on the crypto business to protect consumers and prevent money laundering. Lawmakers highlighted the fact that the unregulated area is prone to surges. prices, fraudulent activities, criminal and terrorist financing.

Morgan also said that the UK government needs to take decisive action, rather than “issuing vague warnings to investors.”

The committee indicated that British financial authorities should be given more powers to control misleading advertising of crypto exchanges and ICOs. Committee staff working on the issue of terrorist financing said that ISIS uses virtual currencies and even posted instructions in. tweet about how to transfer bitcoin to a recipient in Syria.

According to Marshall Billingslea, assistant secretary of the Treasury: “This is an example of a very scary trend that we are talking about. We need to adopt a global set of standards that apply the same everywhere.”

British lawmakers have also indicated that the UK could still become a global hub for the digital economy if the government decides to implement regulations that will help the field grow and eliminate the chaos and confusion that currently reigns in the vast crypto business.

According to moneyandmarkets.com