Experts Have Warned the UK Government Against “Bad” Cryptocurrency Regulation
It has been reported that countries which are expected to lead the movement, when it comes to crypto regulations, such as the U.K are still dragging their feet. Even with that, all indicators from the UK authorities are pointing towards a not so flexible regulation when the time comes. As a result of this, British Business Federation Authority (BBFA), has described the perceived plans of the UK government to regulate the industry in such a manner as “blunt instrument approach,”. The group further stated that, “bad regulation is worse than no regulation at all,”.
Fresh Report from the BBFA
A recently released report from the British Business Federation Authority (BBFA), venture capital fund Novum Insights, and cryptocurrency exchange TodaQ have warned the UK authorities against overly far-reaching regulation.
In the past few months, the UK government has been making several moves to step up the level of power the country’s financial regulator, the Financial Conduct Authority (FCA) has over cryptocurrency. Currently, the power the FCA has over the industry is quite limited and the report has shown that this power is mainly centered on consumer protection and anti-money laundering ( AML) policy.
U.K Needs for Standard Crypto Regulation
The report also made sure to point out that the U.K. has so far been slow in its approach towards understandings and providing adequate oversight of its domestic cryptocurrency ecosystem. The report also stressed that the UK authorities need to remember that London is home to some of the industry’s well-known names such as trading platform eToro and exchange Bitstamp. With the rapid mainstream adoption, the crypto industry is set for in years to come. The time for appropriate regulation is now.
The BBFA chief executive, Patrick Curry also made a statement to back the report.
He stated that:
“The use of this technology is still a voyage of discovery and these technologies are being refined for different types of use. My concern is the law of unintended consequences.”
