According to experts, attempts to tame the “wild west” of cryptocurrencies could lead to negative consequences for the British fintech market. The chief executive of the British Business Federation Authority, Patrick Currie, said that inappropriate regulations could force digital platforms to leave the country, damaging the UK's business reputation.
A joint report from the BBFA, law firm Baker Botts, and venture fund TodaQ states that “tight regulation is much worse than no regulation at all.” The report also found that the government should expand the powers of the FCA, which regulates the UK financial market.
Neil Foster, corporate technology partner at Baker Botts, called for more precise legislation that takes into account current innovations and trends.
Using a more complex classification, we can develop an accurate regulation algorithm. By blindly following the Regulated Activities Order, we are turning the cryptocurrency market into a traditional investment bank.
Patrick Currie assessed what is happening with UK lawmaking regarding crypto business:
This is a rather thoughtless approach to regulation, which we do not see in other democratic countries. This technology has huge unexplored potential for use. I am concerned about the law of unintended consequences.
After reports of fraud and money laundering in the cryptocurrency market became available to the public, the government began working hard to provide the required regulations. The Bank of England and the UK's financial regulator are currently working together to create a regulatory framework.
Earlier this year, the Governor of the Bank of England Mark Carney said that Bitcoin had “failed” as a currency and was becoming “a tool for global speculation, which is inherent in all distinctive features of a bubble,” but it does not pose an immediate threat to global financial stability.
According to telegraph.co.uk
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