“Won’t Rule Out” Crypto, Says Head of UK Regulation
Although digital currencies are adding a new dimension to the financial sector, it is implausible to rule out various risks associated with it. Thus approaching towards a balanced scenario, the head of the financial regulator in UK will look to leverage the benefits that crypto may have, while reducing risk.
Cryptocurrency, a Financial Innovation
On the eve of the organization's annual conference on Tuesday, FCA head Andrew Bailey has detailed the top four operational issues that occur in regulatory work. He further states that it is up to technological transformation and innovative initiatives regarding regulations that allow for firm actions to encourage crypto use, while combating any possible threats in its pathway.
Comprehending the importance of cryptocurrency in today’s financial world, Bailey remarked crypto assets are just as important to the business sector, while operating alongside BC tech. He adds that despite our urge to explore the potential of blockchain tech it is imperative not to rule out the risk associated with crypto-assets. Risks are an evident part of the financial ecosystem, but before that users need to have a thorough understanding of cryptocurrency trading.
Bailey further refers to Cryptoassest Task Force of the British Government, which was declared in March 2018. The task force encompasses the Queen of England’s Treasury, FCA, and the BoE, who work together to understands the risks and rewards of BC and crypto trading.
In May, the task force held a meeting to discuss the possible impact of cryptocurrency on the society. Following this in June, the FCA mailed out letters to CEOs of local banks urging them to follow appropriate practices with consumers dealing with crypto-related activities.