Follow Us

Follow us on Twitter  Follow us on LinkedIn

09 December 2019

City AM: Too much regulation on bitcoin and cryptocurrency could scare away future tech innovators

Back in October, the FCA closed its consultation on banning the sale of cryptocurrency derivatives to retail investors. A consultation that hopefully will start a collaborative discussion, bringing crypto and its regulatory framework up to speed with the rapid growth of the industry.

Crypto is a new market, and it’s little understood — but it has huge potential. Also people care about crypto. The FCA’s consultation attracted a huge amount of interest, and will likely be one of the most responded to in recent years — many responses will be in favour of crypto assets.

The FCA does reflect some of the concerns held by the general public, arguing that crypto assets “have no inherent value”. But it’s worth noting that many of these concerns parallel those in the early days of the internet.

When the internet was born, stories of hackers, scammers, and viruses immediately captured people’s imaginations. Yet investors in the technology persevered, and now it is at the core of almost every facet of modern life.

UK isat a crossroads. When Britain leaves the EU, it has an opportunity to set a new precedent for emerging industries. If it can maintain this collaborative approach and create a balanced, considered legislative agenda, the effects will stretch further than just for crypto assets.

The UK can strengthen its position as the financial capital of Europe and become an incubator for the next generation of tech firms. But over-exacting regulations on innovative products could close the door to innovation and ultimately damage its position as a hub of innovation.

Introducing too stringent regulations on the crypto industry could send a bad message to entrepreneurs who are considering coming to the UK. They are not short of other options.

Full article on City AM

© City A.M.

< Next Previous >
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information

Add new comment