On 18th September 2018, the BBC broadcasted that the UK Treasury Committee is demanding for crypto market taming in a bid to protect investors.
The committee comprising of Members of Parliament (MPs) from the House of Commons is calling for regulations to specific tentative issues surrounding cryptocurrencies, like listing price volatility, poor customer protection, the threat of hacking incidences, and money laundering.
The broadcasting corporation further reported that the lawmakers also directed the Financial Conduct Authority (FCA) to oversee any activity taking place in the crypto world. However, under the current UK Constitution, the FCA is not mandated to control issuers of virtual properties and cryptocurrency exchanges.
“It is unsustainable for the government and regulators to bumble along issuing feeble warnings to potential investors yet refrain from acting.” These are the words of Nicky Morgan- the head of the UK Treasury Committee. He further recommended that the regulations must address the issue of consumer protection and anti-money laundering (AML).
“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.”
The CryptoUK’s Efforts
In line with the Treasury Committee’s recommendations, the CryptoUK (a private regulatory business association for the United Kingdom cryptocurrency sector) has vowed to support the committee’s recommendations.
Iqbal Gandham- the chairperson of the association- reiterated the committee’s recommendations by saying that regulatory control is important to certifying consumer safety, taming malpractices and offering the much-needed clarity to a sector that is rapidly evolving.
The chairperson then stated that the HM Treasury ought to fully empower FCA to take total control of the crypto market. The establishment contended that regulations ought to emphasize on crypto business platforms and brokers, instead of the assets themselves.