Will Brexit affect cryptocurrency regulations in UK?
An impending Brexit seems to be a long dragging wait for all Europeans. The long winding exit procedures and the border problems that emerged as a consequence of the exit have made the government and the residents of the country increasingly weary and all of them are desperate to get over with this muddle. With Theresa May's Checkers proposal rejected Brexit negotiations have reached an impasse.
The Financial Crisis
The cash settlement to meet the financial commitments demanded by the EU to Britain is around 40 billion to 55 billion euros. If the UK plans to pay the settlement UK government will find itself in a dearth of money. "I think it is important to say that meeting this funding requirement has required us to take difficult decisions elsewhere," said Charles Randell, chairman of the Financial Conduct Authority (FCA).
According to a Bloomberg article, Britain's fight against anti-money laundering measures and financial fraud could be hindered if necessary funds are not allocated. The country's hesitant approach towards the cryptocurrency industry has brought forth a series of regulatory actions to alleviate the crypto frauds in the country. The country has been increasingly regulating the cryptocurrency industry and publishing reports about the nascent industry in an effort to fight crypto scams to ensure consumer protection rights for everybody.
A recent report, published by the British Parliament’s Treasury Committee, examines the cryptocurrency landscape and stresses the need for regulations in the industry, which will enforce consumer protection against digital assets and ICOs. "Crypto-assets have been embedded in certain pockets of society and industry, and it is highly likely that they are here to stay. The UK Government and financial services regulators appear to be deciding whether they will allow the current “wild west” situation to continue, or whether they are going to introduce regulation. The current ambiguity surrounding the Government’s and the regulators’ positions is clearly not sustainable," reads the report.
The Bloomberg article states that Britain alone cannot battle crypto regulations and that crypto market regulations should be an international effort. If Britain pays its way out the Brexit conundrum numerous cryptocurrency exchanges and blockchain companies can get a break from regulatory probe at least for a short while as the financial condition of the country will take a while to gather enough funds to control the loosely regulated crypto industry.
Image via BBC
Join our Telegram group