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Laxman Pai, Opalesque Asia: A British parliamentary committee has called on the government of UK to introduce regulation to protect investors from the current "Wild West" situation in the crypto-asset market.
The Treasury Committee published a unanimously-agreed report on crypto-assets for its digital currencies inquiry.
The report finds that problems include volatile prices, hacking vulnerabilities, minimal consumer protection, and anonymity aiding money laundering. At a minimum, regulation should address consumer protection and Anti-Money Laundering (AML).
The report said that Bitcoin and other cryptocurrencies are 'wild west' assets that expose investors to a litany of risks and consumers were left unprotected from an unregulated industry that aided money laundering, while the government and regulators "bumble along" and fail to take action.
UK well placed to become a global centre
If the UK develops a proportionate regulatory environment for crypto-assets, the UK could be well placed to become a global centre for this activity.
"In deciding the regulatory approach, the Government and regulators should evaluate the risks of crypto-assets, and assess whether their growth should be encouraged. If growth is favoured, regulation could lead to positive outcomes for the crypto-asset market, including the move toward a more mature business model and increased liquidity," said the report.
At a minimum, regulation should addres...................... To view our full article Click here
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