Cryptocurrency
Britain’s ‘Wild West’ crypto market should be regulated, say lawmakers via @reuters
As reported by Reuters, “Britain’s cryptocurrency market resembles the Wild West and should be regulated, lawmakers said on Wednesday, urging the government to bring to heel a sector plagued by volatile price swings, vulnerability to hacking and weak consumer protection. “The government’s current approach to the sector is vague and unsustainable, Parliament’s Treasury Committee said […]
As reported by Reuters, “Britain’s cryptocurrency market resembles the Wild West and should be regulated, lawmakers said on Wednesday, urging the government to bring to heel a sector plagued by volatile price swings, vulnerability to hacking and weak consumer protection.
“The government’s current approach to the sector is vague and unsustainable, Parliament’s Treasury Committee said in a report, calling for regulation that protects consumers and prevents illicit uses such as money laundering.
“Still, Britain could become a global center for cryptocurrencies with proportionate regulation, it said, adding that the government should weigh whether it would encourage growth in the sector against its numerous risks.
“Cryptocurrencies are virtual tokens that can be used as forms of payments. They can also be traded on online exchanges, a usage that has become widespread.
“Though the Financial Conduct Authority, Britain’s watchdog, has issued warnings against scams involving cryptocurrencies, the lack of a comprehensive set of rules drew strong criticism from the lawmakers.
“’It’s unsustainable for the government and regulators to bumble along issuing feeble warnings to potential investors, yet refrain from acting,’ said Nicky Morgan, the committee’s chair.
“Extending existing laws to cover cryptocurrency exchanges and initial coin offerings would be the quickest way to give regulators oversight of the industry, the report said.”