RPC Says UK Crypto Regulation Will Take 2 years To Implement
The RPC’s Legal Director, James Kaufmann, stated that the introduction of UK based crypto regulatory policies will require two years in accordance with FCA remit extensions.
The RPC suggests an additional two years may be required to fully introduce digital asset market regulations in the United Kingdom. The firm’s director explained that this timeframe was calculated based on whether the House of Commons Treasury Committee immediately begins progressing submitted proposals. Kaufmann went on to explain that the introduction of such policies in addition to the necessary consultation gap will require some time.
According to similar processes, it can take several years to implement minor policy alterations when it comes to the financial regulatory system. As a previous example, the enforcement of plans made regarding the regulation for home reversion took a timeframe of over two years from the moment the Treasury issued its initial statement. In terms of crypto regulation, the Treasury will first be required to understand all activities pertaining to digital assets, create proposals for regulatory policies that will then be submitted for consultation, and lastly, agreed upon changes will need to be published in line with a date of enforcement.
Regulating UK Crypto Market Presents A Challenge
Kaufmann noted that even if proposals were expedited it would still require years for policies regarding the UK crypto market to be implemented in a manner that would both protect retail industries and help promote the greater crypto market. He also stated that major issues in the nation such as Brexit have already begun to occupy much of regulatory agency efforts.
The RPC is planning to introduce new policies that will facilitate a more expansive role for the FCA. However, this plan has raised several questions regarding the FCA’s remit, particularly regarding whether it will have the ability and funding to back its newly extended role. Also, the firm questions whether the FCA possesses the appropriate expertise to properly regulate a topic as technologically advanced as the crypto market. Another lingering fear questions whether the agency is prepared enough to deal with the response crypto markets will have on future policies.
It was also mentioned that the Treasury Committee Report stressed the importance of regulating the digital asset market described as the Wild West. It was suggested that the FCA be given authority to include ICOs under their remit. However, it was argued that the FCA needs a greater level of power in order to control the manner in which exchanges and ICOs offer their services which can only be done by including this sector into their regulatory sphere. This action could also offer investors additional protection regarding mistreatment or fraud related activities.