Members of UK House of Parliament call for crypto regulation

  • September 19, 2018
  • 2:23 pm ET

Palace of Westminster, London, United Kingdom

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With Brexit looming, Westminster urged to follow leading nations such as Japan in crypto regulation or risk being left behind.

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Under fear of a possible hard Brexit, the Commons Treasury Select Committee has urged its fellows in parliament to expand the Financial Conduct Authority (FCA) remit to include jurisdiction over the crypto finance and the blockchain sector “as a matter of urgency”.

A gap in the countries existing regulatory structure exposes many investors to potential asset theft and grave losses, with no formal recourse for consumer compensation under the markets current “wild west” conditions.

In a little more than 6 months, Britain is scheduled to leave the EU on March the 29, 2019 at 11 pm local time. In the case of a hard Brexit with no transition period, Britain could be left in a really vulnerable position with regards to its crypto governing laws.

Duplication of existing EU crypto regulation or at the very least, the introduction of EU anti-money laundering (AML) and know your customer (KYC) regulation must be implemented in preparation for a hard Brexit.

“It’s unsustainable for the government and regulators to bumble along issuing feeble warnings to potential investors, yet refrain from acting.”

Committee chair Nicky Morgan said during a FCA hearing.

Britain’s “hands off, wait and see” approach has been criticised by Ryan Zagone, Ripple’s Director of Regulatory Relations, who insisted that example should be taken from leading crypto nations like Japan, where exchanges are highly regulated and cryptocurrencies such as Bitcoin are legal methods of payment.

Quick action by UK lawmakers will not only protect investors and reduce money laundering but also legitimize and tame what is now so-called the “wild west” of markets and will turn the UK into a global center for the cryptocurrency industry.

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