Cryptocurrency Regulation: FCA set to receive extended mandate from the UK government

The United Kingdom Government plans to give the country's regulatory body the power to oversee the regulation of cryptocurrencies.

Imposition of the UK cryptocurrency regulation

Second The Guardian, the Government of the United Kingdom Government has announced its readiness to authorize the Financial Conduct Authority (FCA) a regular all resources in virtual currency. This decision comes after parliamentarians have issued a warning stating that digital currency resources made investors vulnerable to risks.

While the FCA currently regulates a few cryptocurrencies, many others including Bitcoin do not fall under its supervision. The Restricted Treasury Committee of the House of Commons first named for the regulation of the cryptocurrency sector. According to the committee, the regulation would protect customers and businesses without stifling innovation.

The Treasury's economic secretary and city minister, John Glen, said:

The government will consult at the beginning of next year to assess whether other crypto-assets that have characteristics comparable to specific investments but that do not fall within the current perimeter should be included in the regulation.

Glen also said that the FCA could oversee cryptocurrency companies to curb money laundering and terrorist financing. The economic secretary also noted that the United Kingdom Government believed that initial coin offerings (ICOs) could be useful for raising capital in the future.

Nick Morgan, head of the committee, also commented on the government's latest decision. According to Morgan, the regulatory body and the British government have recognized concerns such as investor protection and the lack of regulation raised by the committee.

The regulatory agency plans to ban the sale of cryptocurrency derivatives to consumers. The body will conclude the consultations towards the end of 2018. Morgan, commenting on the plan proposed by the FCA, says that his team will closely follow the discussions and will continue to push for a virtual monetary regulation.

An FCA regulation would mean that consumers / investors can be helped or compensated. The committee also said that the country would become a hub for digital currencies with the implementation of investor protection.

More countries regulating the industry of cryptocurrency

Other countries are starting to launch regulatory plans for the cryptocurrency sector in an attempt to protect investors / customers. Governments consider virtual money as a way of money laundering. Regulators also urge consumers to take prudent measures because of price volatility and other risk factors.

Some experts in the United Kingdom before put on guard that an attempt by the FCA to regulate the digital money industry could force trade out of the country. Experts claim that this move could adversely affect the reputation of Fintech in the United Kingdom.

The association of South Korean lawyers recently solicited the government to develop laws that would develop the local cryptocurrency industry and protect investors.

Furthermore, Albania, in an attempt to attract investors and create new opportunities, decided to set up a regulatory framework for virtual currency.

Image courtesy of the Ethereum World News archives.