Blockchain and cryptocurrencies are daily gaining interest with startups. Since government regulations are not yet in place, governments are still encouraging startups to invest in this technology. However, globally, governments are seeing the need to control and monitor blockchain users to prevent deception from companies. By observing blockchain, the government will encourage investors to contribute to legitimate companies.
The blockchain industry has gained popularity in countries such as the US and Asia. However, London has seen an increase in ambitious blockchain projects and startups.
The UK has not yet finalised its laws regulating cryptocurrencies. However, discussions are underway in Parliament, to establish such essential laws.
On the 22nd of March, a “cryptocurrency task force” was presented by Chancellor Philip Hammond. The established task force includes regulators and representatives from the Bank of England and the Treasury. In fact, it is highly possible that the UK will draft a new legal infrastructure for their blockchain industry.
During a Treasury’s International Fintech Conference, U. K’s City Minister, John Glen, stated that for the UK to give the cryptocurrency industry a boost, “proportionate” regulations need to be drafted before becoming law.
Business Insider reported Mr Glen saying that “Regulation could be an enabler of a stable, flourishing cryptocurrency exchange in the City of London.” Also, he added, “I think it’s right that we take appropriate – not really cautious, but proportionate—steps to evaluate it before we act as a government.” Furthermore, the minister confirmed that no cryptocurrency trading and other related actives are posing any risks towards the UK economy.
In April, CoinfloorEX, a UK cryptocurrency exchange announced that it would start offering bitcoin futures contracts. Moreover, Mr Glenn pointed the importance that before the government should take measured steps in legal clarity before encouraging local innovation startups.
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