UK Government a “Passive Observer” of the Crypto Market

The British government has done little to assess the impact the cryptocurrency decline might have on the country’s blockchain industry.

The British government has adopted a laissez-faire attitude towards the risks and threat to the domestic blockchain industry coming from the recent slump on the global cryptocurrency markets, Finance Feeds reports, citing Lord Bates, Minister of State at the Department for International Development.

Answering the questions posed by Lord Taylor of Warwick about the governmental assessment of the potential effects the cryptocurrency market decline might have on the blockchain industry in the UK, the minister confessed that the government has done little in that respect, though it monitors developments in the digital assets market and limits itself to the role of a passive observer.

“The Government has not made a formal assessment of any potential implications of recent changes in the value of cryptocurrencies. However, the Government continues to monitor developments in the cryptocurrency market”.

British government agencies including Bank of England tend to neglect the cryptocurrency industry’s impact on the economy as it is considered to be too small to do any serious harm.

"The FSB's initial assessment is that crypto-assets do not pose risks to global financial stability at this time," BOE's head Mark Carney said in a letter to G20 finance ministers ahead of their March meeting in Argentina.

This approach does not jibe with British ambitions to become a global hub for blockchain companies. Recently, the British Financial Conduct Authority (FCA) launched a global sandbox to provide a safe regulatory environment for testing fintech ideas and encourage innovations.

It seems that the authorities are focused more on how to regulate the industry with the aim protect investors, avoid scams and close the loopholes for tax evaders and money launderers. Back in March, the Chancellor of the Exchequer created the Cryptoassets Taskforce to consider the potential threats and benefits of digital assets and the underlying blockchain technology, which is going to publish the report in the Autumn.