The UK Parliament demanded that the country’s financial regulatory authorities take measures to regulate the commercial activity of cryptocurrencies, as so far they claim that they function outside the law.
Members of the Treasury Committee of the House of Commons in Parliament urged the UK’s Financial Conduct Authority (FCA) to impose cryptocurrency regulations that can protect users from the risks associated with trading in digital assets.
The demand was made by Nicky Morgan, chairman of the Treasury Committee, who assured that “it is unsustainable” to continue issuing “weak warnings to investors and refrain from acting.”
Morgan told the BBC that the problem of poor user protection must be tackled first, while solutions are being studied to control price volatility, the risks of cyber attacks, while anti-money laundering policies are being implemented.
The UK Parliament demands stricter cryptocurrency regulations
During this quarter of the year, the FCA is expected to publish a Discussion Paper worked with the Bank of England and the Treasury Department. This publication promises to establish which is the “political thinking” regarding the cryptocurrencies. For its part, CryptoUK, created as a self-regulating entity, said it received the statements of the UK Treasury Committee in good terms.
“Regulatory oversight is essential for consumer safety, protecting consumers against malpractice and providing much more clarity to a rapidly maturing industry,” Iqbal Gandham, director of CryptoUK said.
That is the first time the UK Parliament has raised the issue of cryptocurrency regulations, after initiating an investigation into the risks and opportunities of implementing crypto and blockchain technologies in the country’s public and private sectors.
Also, in January of this year, Theresa May, Prime Minister of the United Kingdom, commented this year that “cryptocurrencies such as Bitcoin (BTC)” should be “very seriously observed, precisely because of the way in which criminals can use them.”