Last week, the UK Financial Conduct Authority (FCA) outlined a list of regulations which companies engaging in cryptocurrency use in the UK should abide by in order to reduce occurrences of fraudulent activity within the UK as a result of cryptocurrencies.
The document, named Cryptocurrency Derivatives, discussed the different avenues which companies may go down and thus come into contact with cryptocurrencies. The FCA highlighted a need for these companies to seek approval from the FCA before making transactions etc. Whilst the document seemed to air away from regulation street, it really did sound like actually, the FCA are making big steps towards regulation here.
Now, according to the Daily Express (UK), the FCA will be producing a comprehensive review into cryptocurrencies, in partnership with the Treasury and the Bank of England.
According to the Daily Express:
“The plan states that the FCA will be working with the Bank of England (BoE) and the Treasury as part of “Cryptoassets Task Force” to develop thoughts and motives towards a discussion paper later on this year which will outline policy thinking in regards to cryptocurrencies.”
Furthermore, according to the Daily Express, the CEO of ‘Energi Mine’ Omar Rahim has said:
“The FCA’s involvement in the ‘Cryptoassets Task Force’ is a landmark moment in the crypto-world. This will be the first time that a country’s regulators, central bank and government have come together to formulate ideas and policy surrounding cryptocurrencies.”
This insists a promising overtone in contrast to the FCA’s recent movements. As Rahim suggests, this is the first time a country has involved numerous regulators within active debate with regards to cryptocurrency. Elsewhere, the banks and governments seem to weigh in on regulation as lone entities, here, various different policy makers will be on hand to offer insights and opinions, in what should lead to a fair assessment of cryptocurrency in the UK.
Whether or not this review will lead to regulation or adoption, it’s nice to hear that a discussion has been opened. What this could lead to is further input from politicians and the houses of parliament, especially in the run up to local elections and within incentives such as ‘the northern powerhouse’.
We wait in anticipation for the full review from the FCA, I think it will take a bit of time to complete but i’m sure neither the FCA, the Treasury or the Bank of England will want to be waiting around, especially considering the mounting pressure that is being applied by other countries with regards to cryptocurrency regulation.
For now, we will keep an eye on these developments for you and will be here with the news as it comes in. Maybe this review will hit us sooner than we think!