Crypto Could Flourish with “Appropriate” Regulations, Believes UK City Minister
British govt. minister claims crypto does not threaten country’s economic stability; confirms that the focus is on introducing the “right” level of regulations which can minimize risks and encourage stable growth in the new space.
Shortly after the UK government’s announcement about a cryptocurrency task force set alarm bells ringing, U.K. City Minister John Glen has stated that the burgeoning crypto market poses no threats to Britain’s economy, and will be met with a “proportionate” level of regulation which will encourage innovation and growth in the new industry.
According to Business Insider, Glen told journalists on the sidelines of the Treasury's International Fintech conference that the government was conscious of the “interest and activity” in the new space, and aware that it was not “posing any significant risk to the UK economy”. Earlier this month, Mark Carney (Bank of England governor and head of the Financial Stability Board) issued a similar statement, claiming cryptocurrencies were too small and limited in scope to threaten the stability of the existing financial system.
In light of this, Glen continued that the U.K. government’s goal was to “find the right narrative and the right level of regulation” for the emerging industry.
“I think it's right that we take appropriate — not really cautious, but proportionate — steps to evaluate it before we act as a government.”
Cryptocurrencies exploded in popularity during the latter half of 2017 – however, while traders and investors welcomed the crypto boom with open arms, governments and financial authorities have struggled to establish appropriate regulatory frameworks and keep pace with the ever-expanding space. Speaking on the challenge of regulating cryptocurrencies without stifling beneficial growth, Glen said:
“The issue is, how do we regulate or not, how do we enable or not, based on the blend of opportunities and risks that may exist in this new technology.”
Commenting on the opportunities the crypto market offers and the benefits of appropriate regulation, Glen added: “Regulation could be an enabler of a stable, flourishing cryptocurrency exchange in the City of London.”
Earlier this month, cryptocurrency regulation also featured on the agenda for the G20 Summit in Argentina. However, members of the G20 group were unable to reach consensus on how to approach cryptocurrency regulation, and set a deadline for July this year to further discuss the matter.