The UK Treasury Committee will investigate the potential benefits and risks of cryptocurrency in order to better understand how to regulate this new technology.
“People are hearing more and more about cryptocurrencies like bitcoin, but they probably do not know that at the moment they are not regulated in the UK. Therefore, it is extremely important to find the right balance between the regulation of digital currencies and the adequate protection of consumers and business, without interfering with the development of innovation, “said the head of the committee, Nikki Morgan.
In addition, lawmakers are going to study how the underlying bitcoin blocking technology can affect the work of financial institutions, including the Bank of England.
Representatives of the parliament already demanded comprehensive legal assessments, separation of clients’ and companies’ funds, “honest, transparent and not misleading” customer relations, as well as using cold wallets to store clients’ funds.
“CryptoUK will appeal to the government with a proposal to establish proper regulation to protect consumers and ensure business certainty, which will lead to the prosperity of this sector in the UK,” the statement said.