Cryptocurrency regulation has been the major concern for the UK House of Parliament, and its members have recently issued warnings about potential losses that make up for quite a lot of revenue. The crypto market has therefore been deemed as ‘Wild West’ by the authorities.
The Commons Treasury select committee has urged the government to take actions to safeguard investors’ interest by regulating more laws and letting law firms take matters into their own hands, thus turning the UK into a “global center” for the cryptocurrency.
The Commons Treasury select committee has recommended the Financial Conduct Authority (FCA) to take the lead in turning the crypto market into safe heaven by keeping an eye on the blockchain sector and making amends not by starting from scratch but upgrading current assets to bring things to speed.
The report from the committee suggests that taking such actions would crumple the chaos in the cryptocurrency market like a ball of paper. Furthermore, existing EU anti-money laundering (AML) and know-your-customer (KYC) regulations were to be deployed alongside FCA.
If Brexit comes into play without a transition period, the EU rules will be prioritized to be adopted in UK law – no questions asked. Rounding up the recommendations, the MPs also proposed to enhance legal backing for FCA so that it will be able to regulate crypto stocks and ICO companies more efficiently.
Crypto UK, the body representing UK’s leading crypto groups, met with The Commons Treasury select committee in May, to legitimize the crypto business.