The British cryptocurrency market resembles the Wild West and should be regulated, lawmakers said today, urging the government to bring into the heel a sector beset by volatile price swings, hacking vulnerabilities and weak consumer protection .
The current approach of the government For the sector is vague and unsustainable, the Parliament's Treasury Committee said in a report, calling for regulation that protects consumers and prevents illicit uses such as money laundering.
However, Britain could become a global center for cryptocurrencies with proportionate regulation, adding that the government should consider whether it can encourage the growth of the industry against its many risks.
Cryptocurrencies are virtual tokens that can be used as forms of payment. They can also be exchanged on online exchanges, a use that has become widespread.
Although the British watchdog has issued warnings against scams involving cryptocurrencies, the lack of a complete set of rules has aroused strong criticism from legislators.
"It is unsustainable that governments and regulators are concerned with issuing weak warnings to potential investors, but refraining from acting," said Nicky Morgan, chairman of the committee.
Extending the existing laws to cover cryptocurrency trade and the first coin bidding would be the fastest way to ensure regulatory oversight of the sector, he said.
Striking to Balance
CryptoUK, an industrial body, welcomed the recommendations
The government should "introduce a regulation that achieves the right balance between the creation of safeguards and the possibility for the United Kingdom to become the world leader in cryptography, "said Iqbal Gandham, president.
Cr the last year the ring roads recorded a "surge", especially by individual investors. The price of bitcoin, the best-known cryptocurrency, has risen by more than 1,300 percent in 2017 to reach a record level of nearly $ 20,000, but has since collapsed. It was trading around $ 6,370.
Politicians around the world are struggling with how to deal with cryptocurrencies and their underlying blockchain technology, stating that proponents have the potential to transform industries like finance and insurance.
Few major jurisdictions have seriously looked at how to regulate digital money, despite a series of trade-related thefts and concerns that cryptocurrencies allow crime.
Japan last year became the first country to oversee the cryptocurrency trade at the national level, with the aim of taming an unruly sector and exploiting the growth potential of the sector. Others, including China and South Korea, have blocked cryptocurrencies.
In contrast, Western states have undertaken few concrete actions. US securities regulators have stepped up their control, noting that cryptocurrencies could be considered as securities and as such subject to federal laws.
The EU has so far avoided regulation due to the relatively small size of the sector, although a prepared report for the block this month said it should adopt common rules on cryptocurrencies.
(Report by Tom Wilson, edited by Gareth Jones)
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