Introduction of cryptocurrency market regulations could take two more years: James Kaufmann
James Kaufmann, Legal Director, Reynolds Porter Chamberlain (RPC) says that the UK regulation of the cryptocurrency market would take two years to be introduced.
This is plainly due to the extensions of the Financial Conduct Authority’s (FCA) remit.
RPC is a British law and insurance firm with branches in Bristol, Singapore, and Hong Kong. They have more than 720 staff members that include 80 partners and 330 other lawyers.
As per the press release, the process of introducing necessary regulations will take a lot of time since there awaits a consultation period too at the House of Commons Treasury Committee.
He also notes that past precedents show that it can take years to make a relatively minor regulatory change to the financial regulatory regime.
To put things in perspective, he says that it took two and a half years from the Treasury’s original announcement (10 May 2004) for the regulation of home reversion plans to come into force (6 November 2006).
According to him, the introduction of new regulations would lead to FCA’s greater involvement, which in turn would raise concerns as to whether the authority has enough expertise and funding to regulate the crypto industry.
To develop a regulatory framework for cryptocurrencies is “going to be a difficult and lengthy process,” as per Kaufmann. He also notes that there has to be a balance “between protecting retail participants and allowing the U.K.’s cryptocurrency market to thrive.”
“The race to establish a workable and regulated regime for cryptocurrencies is surely worth winning as their usage becomes more widespread across Europe and globally. The creation of a cryptocurrency trading hub may also have positive knock-on effects for businesses serving these markets, such as brokers, investment banks, and custodians as well as a potential increase in tax revenues for authorities,” he adds.
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