The regulations will help boost collaboration between fintech companies and banks as well as with the government to remove barriers that help them grow domestically and internationally. The initiatives will help manage risks of use of cryptocurrencies and harness any benefits
U.K. will launch a cryptocurrency task force and other fintech initiatives according to a statement by the office of the Treasury. U.K. Chancellor of the Exchequer Philip Hammond will launch the task force at the government’s second International Fintech Conference.
The task force will help the government to manage the risks relating to cryptocurrency assets and realize any benefits of the blockchain technology. It will be part of the government’s larger Fintech Sector Strategy. The government, through Prime Minister Theresa, may say it was concerned with the use of cryptocurrencies in crime.
The Need To Regulate Cryptocurrencies
She said this at the January’s World Economic Forum where Hammond also called for the need to regulate cryptocurrencies. Governor of the Bank of England Mark Carney also called for the need for regulation in the cryptocurrencies during the March Scottish Economics Conference. Carney said he was not opposed to innovations by cryptocurrencies.
The task force will include the Bank of England and the Financial Conduct Authority in addition to the Treasury. Hammond will also announce “the next steps in ‘Robo-regulation,” among other measures in the fintech space. Robo-regulation will include pilot schemes meant to help new fintech firms and financial industry services to comply with regulations through automation. This will help them save time and money.
It is to be remembered that blockchain helps a great deal in this through smart contracts. To help U.K. firms to expand globally, the government will also announce initiatives to collaborate with the Australia fintech markets. In addition to removing barriers that fintech companies face through creating shared platforms between the governments and fintech. Fintech Sector Strategy will also include standards to help improve collaboration between fintech and banks.