Cryptocurrency regulations have a deep impact in the way businesses decide to invest their funds. Crypto and blockchain investments are growing everywhere, and the countries with the most attractive legal framework will be benefited. The United Kingdom (UK) is expected to reveal cryptocurrency regulations before 2019. The intention is to attract business settled in Europe.
UK Crypto Regulations
After Brexit it was clear that the UK and more specifically, London, have been affected by the economic and political uncertainty. Some enterprises decided to move their headquarters to Frankfurt, Paris, or Amsterdam. But there is a possibility to revert this situation by attracting crypto related enterprises.
The Financial Conduct Authority (FCA) announced that they will be working with the UK Treasury Committee in order to analyse the risks and opportunities related to cryptocurrencies and blockchain technology.
Jacob Ghanty, financial regulation expert, commented:
“At a high level, there is pressure on the UK authorities to develop a comprehensive strategy towards crypto, as sooner or later the EU will develop its own approach meaning there will need to be compelling reasons for crypto firms to locate in the UK.”
It is important to mark that cryptocurrencies and blockchain technologies are working in an unregulated market. And restrictive measures are not so easy to create and take. There are some specialists that believe that no regulations should be implemented. This approach could allow several enterprises to develop incredible businesses and products. But if there are several scams or frauds, then it becomes more difficult for the environment to grow. Some regulations should be created.
Kay Swinburne, member of the European Parliament, said about London becoming a global blockchain hub:
“For me, this whole distributed ledger technology, we have to embrace it. The UK post-Brexit: how does the City of London stay relevant? The City of London stays relevant by suddenly becoming the proponents of the new technologies and not just patching existing systems to make them work post-Brexit, actually leapfrogging.”
During this year, new regulations will be debated worldwide and the United Kingdom will have a clearer position towards these technologies.