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UK Regulators Looking to End the Wild West Situation of Cryptos

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UK Regulators Looking to End the Wild West Situation of Cryptos

cryptocurrency

Cryptocurrencies have experienced a bearish market in the last nine months mainly because of the regulatory changes. From its January’s all-time high, it has already lost 80% of its value last week.

And with regulatory changes, many investors are hesitant whether or not cryptos are going to be banned. In China, things started earlier than expected as its regulators started clamping down on the crypto niche in September of 2017. However, the country has reinvigorated its interest in banning crypto related activities recently.

In the US, there is progress in the crypto market. So far, there is the possibility of having a Bitcoin ETF. And what are the chances of having this kind of investment product? Many believe that Solid X and VanEck’s Bitcoin ETF application has a really good chance, not to mention there is now a pro-crypto SEC commissioner in Hester Peirce.

In the UK, lawmakers are looking to step up regulations cryptocurrencies. According to them, they want to clamp down on the “Wild West” crypto market and to turn Britain as a country that regulates cryptocurrencies.

Hacking and Poor Security

The Treasury Committee has released a report that called for the government to address different issues that surround the crypto market. Issues that included in the report are volatility of the crypto market, poor security, and hacking concerns.

Today, the paper claims that the British government doesn’t have a solid stance when it comes to cryptocurrencies. And because of the ambiguity in the way lawmakers handle cryptocurrencies, it opens the doors to criminal activities.

The report says that “As the Government and regulators decide whether the current Wild West situation is allowed to continue, or whether they are going to introduce regulation, consumers remain unprotected”.

The committee chair, Nicky Morgan MP is quite realistic with her opinion regarding the crypto market saying that government and regulators are not really helping if they simply “bumble along, issuing feeble warnings to potential investors”.

Britain as a Crypto Hub?

Lawmakers are suggesting that with the necessary changes in regulating cryptocurrencies, Britain can potentially be considered as a main player in crypto trading. According to Coinbase UK CEO Zeeshan Feroz, “The UK is in a race with other financial hubs around the world who are also vying to become the world’s crypto capital, so it’s important that this regulation is implemented as quickly as possible”.

Different countries have provided different approaches to cryptocurrencies. And since the market is still young, there is no consensus how to handle cryptocurrencies. Though even G20 is now calling for a unified regulatory approach in the market.

It is true that there are a number of issues surrounding the crypto market today. Investors may have lost a tremendous amount of money in the crypto market considering the volatility involved in the market. There are those who believe that institutional investors entering the picture could be the one thing that can help stabilize the price of cryptocurrencies. Unfortunately, institutional investors are still not completely involved in the market. Despite the developments surrounding institutional investors such as Goldman and ICE, the big player still haven’t provided fresh capital needed by the niche today.

 

Janneke Eriksen

Janneke is a writing ninja and has vast experience in journalism, specifically in the crypto space. As a blockchain believer and avid Bitcoin fan, she’s incredibly excited to share to our readers the latest news around so they are always updated wherever they are.

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