UK MPs are calling for a need of regulation with the framework of cryptocurrencies and the ecosystem behind them. The members of the House of Parliament have equated the markets to the “Wild West” as investors within the current market conditions are at risk to hackers as well as massive losses due to a lack of regulation.
The Commons Treasury select committee has recently advocated that the government should institute regulations to protect consumers from the inherent risk of investing as well as to weed out money laundering. The claim is that this will turn the UK into a “global centre” for the blockchain and crypto sector.
According to Committee chair Nicky Morgan:
“It’s unsustainable for the government and regulators to bumble along issuing feeble warnings to potential investors, yet refrain from acting.”
The committee also suggested that the Financial Conduct Authority (FCA) claim authority over this nascent market as it does already over the other securities and exchanges. The matter was recommended to be instituted with some urgency, and to cut down on developing an entirely new framework, they should implement the cryptocurrency market into the current system in place of the financial sector.
If Brexit hits the country without a window of transition, the committee wants UK lawmakers to create a similar foundation as soon as possible in order to create an expedient regulation over the market. The committee believe that instituting the current anti-money laundering (AML), know-your-customer (KYC) and combating terrorist financing (CTF) regulations will speed up the process to a more secure and less volatile market. In the proposal, the MPs believe that the FCA will need to hold a legal precedent over the advertising involved with ICOs and cryptocurrency exchanges.
If these procedures are adhered to, the UK may find itself as a global hub for the crypto markets, or it may see a backlash from the purist crypto enthusiast.