Learn From The UK Treasury Committee The Need To Regulate Cryptocurrency

Learn From The UK Treasury Committee The Need To Regulate Cryptocurrency

The UK Treasury Committee, which houses some of the A-listed members in UK’s Parliament feels there is an urgent need to regulate Bitcoins and other cryptocurrencies before the whole situation turns murky and chaotic.

Reasons why the Committee feels regulation of Cryptocurrency is necessary

  • Sometimes investors get involved in certain situations that lack proper oversight and as a result, investors are prone to lose and become preys to malicious activities. Since Bitcoins and other cryptocurrencies fall under the investment category of crypto assets, which are basically an unregulated industry, investors are at a risk of facing losses.
  • Additionally, the high price volatile nature of the crypto assets makes this investment a risky business.
  • Moreover, the recent vulnerability of these assets being susceptible to hacking and fraudulent exchanges tarnishes the scene even further.

Hence, for the above reasons, the UK Treasury Committee firmly believes that the cryptocurrency space should be highly regulated, keeping in mind the best interests of the investors.

What has been done so far?

In lieu of these concerns, some of the members from the UK crypto space joined hands to form a group under the banner Crypto UK in February 2018. The main intention of these people is to regulate every transaction occurring in the cryptocurrency industry. As a result, they have:

  • Laid down certain principles on how transactions must be carried out.
  • Created a code of conduct describing how it should be for various market participants.
  • Enforces all exchanges to store at least 90 percent of their users’ currency away from the internet, which is mainly in cold storage to avoid illegal hacking.

This approach has been a success and was much appreciated and even implemented by the Winklevoss brothers at their Virtual Commodity Association.

However, the Committee has expressed its concern over the methods carried out by Crypto UK stating that not all exchanges will adopt these rules and thus dissolving the true purpose. Hence, the Committee feels an urgent need to launch a more formal regulation to keep the entire industry fully accountable for its actions. Moreover, the Committee assures that the UK will soon be in a position to become a major international hub for all crypto investments once the proper regulatory framework is in place.

Rest assured the crypto space would soon be a safe haven for all investors alike. Read more about Crypto Code, a great platform to invest your two cents in the cryptocurrency industry if you have not done it already.

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