On September 18, BBC reported that the U.K Treasury Committee aims to set regulations for digital currencies in order to guarantee better protection for investors.
“Crypto-asset investors are currently afforded very little protection from the litany of risks. Namely, there are no formal mechanisms for consumer redress, nor compensation,” The chair of the of the Treasury Committee, Nicky Morgan said on the interview with BBC.
The resolution was made especially to solve certain issues that are around cryptocurrencies, such as high risk of hacker attacks, weak consumer protection, money laundering and listing price volatility. The call of concern was made by the Committee of Members of Parliament (MPs) in the House of Commons, which also directed the Financial Conduct Authority (FCA) to play a role as a supervisor for cryptocurrencies. Legally, the FCA is not able to regulate – neither cryptocurrencies or issuers of digital assets.
Morgan took a stand of the topic saying that “it’s unsustainable for the government and regulators to bumble along issuing feeble warnings to potential investors, yet refrain from acting.”
He then stated, that “As the government and regulators decide whether the current Wild West situation is allowed to continue, or whether they are going to introduce regulation, consumers remain unprotected” referring to the issue of non-existing regulations for the problems among anti-money laundering (AML) and protection of consumers.
U.K.’s self organised trade association, CryptoUK, reacted to the Committee’s petition;
“Regulatory oversight is essential to ensuring consumer safety, guarding against malpractice and providing much needed clarity to an industry that is fast maturing”, Iqbal Gandham, the chairman of the association stated.
Last May, CryptoUK reportedly reassured the Treasury Committee to have an eye on the cryptocurrency markets of UK, in return of affirmative regulations from the committee’s side.
Author: Sarah Tuuli