UK's lawmakers

UK’s Lawmakers Plan To Formally Investigate Cryptocurrencies

UK’s Lawmakers Plan To Introduce New Crypto Laws

Britain’s Treasury Select Committee has expressed the need for new cryptocurrency regulations. UK’s lawmakers have also launched an investigation to determine if cryptocurrencies can be beneficial to consumers, and the types of risks associated with them. Nicky Morgan, a British Conservative party politician and head of the Treasury Committee, stated, “People are becoming increasingly aware of cryptocurrencies“. However, she pointed out that these same people might not realize that digital currencies are still not properly regulated in the UK.

As part of their probe, regulators and researchers will try to determine if digital currencies will be able to eventually replace fiat currencies as a medium of exchange. They’ll also look at how potentially disruptive the cryptosphere could be in terms of the way the country’s public sector operates. Additionally, the investigation will carefully examine how regulatory authorities in other jurisdictions have responded to their crypto-market. This is meant to assist the British government in learning how to deal more effectively with their own crypto industry.

In order to conduct their crypto investigation, UK’s lawmakers plan to consult the experts in this field. During their consultations, regulators will collect written and verbal proof about information related to cryptocurrencies. After analyzing their findings, they’ll advise the British government on the best course of action when it comes to monitoring their nation’s crypto-market.

 Balanced Crypto-Regulations

Like authorities in other countries, UK’s lawmakers want to make sure that they adopt a balanced approach in regulating cryptocurrencies. Moreover, British politicians have indicated that they’d like to ensure consumer safety in a manner which will not impede the growth of the nation’s crypto-market. Morgan explained, while researching digital currencies, UK’s parliament would like to determine “to what extent they could disrupt the economy and replace traditional means of payment”.

Notably, these developments have come during a time when other European regulators, namely France and Germany, have grown quite concerned about the rise of various crypto-related scams and hacks of crypto-exchanges. During  the G20 Summit, which will be held in Argentina this year, world leaders are expected to discuss “the policy and monetary implications of cryptocurrencies”.

Crypto Industry Requires Clarity Of Thought

Alison McGovern, a British Labour party politician and member of the Treasury Select Committee, acknowledged that UK’s economy could potentially benefit from the crypto industry, as long as the associated risks are mitigated. Therefore, she suggests that the British government start thinking “more clearly” about the emerging digital currency market.

It seems that UK’s lawmakers are moving in the right direction. Whenever a new technology is introduced, there are always people who will look to use it in a harmful and unlawful manner. However, this doesn’t mean that there’s something wrong with the technology, in this case cryptocurrencies. Moreover, like any new invention, crypto-related technology should be used responsibly.