Cryptocurrency industry representatives gave evidence to Britain's Treasury Select Committee this week, warning that without regulation, the nation risked missing out on \"the biggest technology since
Cryptocurrency industry representatives gave evidence to Britain's Treasury Select Committee this week, warning that without regulation, the nation risked missing out on "the biggest technology since the internet."
Iqbal V. Gandham chairs CryptoUK and manages eToro's UK operations. He told lawmakers the government needed to act fast. "We made this mistake to our cost 25 years ago with the rise of the internet," he said. "The UK economy cannot afford to do so again. Regulatory certainty is crucial to promoting innovation for the future."
CryptoUK counts eight founding members: BlockEx, CEX.IO, Coinbase, Coinshares, Coinfloor, CommerceBlock, CryptoCompare, and eToro. The group argues that crypto exchanges should fall under the country's Financial Services and Markets Act, subjecting them to the same regulatory framework that governs traditional financial institutions.
Gandham laid out the regulatory approach CryptoUK favors. "Regulating the point where cash is converted to crypto and vice versa is a simple solution to the serious concerns currently tarnishing this technology," he said. "It offers a clear means to tackling illegal activity and protecting consumers, whilst enabling the best of this industry to flourish."
The organization wants the Financial Conduct Authority to issue licenses to platforms and enforce anti-money laundering rules and operational standards. Regulation should target exchanges, brokers, and trading platforms rather than the digital currencies themselves, CryptoUK maintained.
The Treasury Select Committee launched its investigation into digital currencies in February. Nicky Morgan, the committee's chair, said lawmakers would examine both the risks and potential benefits of cryptocurrencies and blockchain technology for the British economy.
"Striking the right balance between regulating digital currencies to provide adequate protection for consumers and businesses, whilst not stifling innovation, is crucial," Morgan said. "As part of the inquiry, we will explore how this can be achieved."
Momentum toward formal oversight was building elsewhere. France planned to announce cryptocurrency and ICO regulations in the coming weeks as part of efforts to encourage blockchain and fintech development. Malta and Bermuda had already implemented ICO regulations, signaling to crypto companies where they might find a supportive environment.
