UK Report Warns PMs Not to Crack Down Too Hard on Crypto

A new report on cryptocurrency regulation in the UK warns that "Bad regulation is worse than no regulation at all," the Telegraph reported on Monday.

Experts cited in the report claim that an overly harsh crackdown on cryptocurrencies could break up the UK crypto market, causing companies to move to less regulated pastures to set up shop and dent the UK's reputation as a hub for fintech innovation and advancement.

Calls to Regulate CryptoNovum Insights was in the Telegraph morning for our response to the crypto asset task force with our colleagues at Baker Botts, the BBFA and TodaQ https://t.

Toby Lewis October 29, 2018.The report comes as a response to a plan by MPs to use the Financial Conduct Authority, a UK regulator independent from the country's government, to enact stricter rules around cryptocurrencies.

The FCA outlined these planned regulatory steps on its website and was part of a task force reporting on the state of crypto in the UK whose findings were published in July and updated today.

Foster argues that putting all crypto assets under the umbrella of the UK's Regulated Activities Order, which there have been calls to expand the powers of after crypto-related crime, would only offer one set of rules that might prove too restrictive for some digital asset businesses.

UK Could Be At A Tipping PointThe UK is at a crossroads with cryptocurrencies, and it has to be careful of how it proceeds, experts warn.

On the one hand, the UK is poised to become another crypto hub.

For its part, the FCA has stated it will commit to establishing "Perimeter guidance" on which digital assets do and don't fall within its rules by the end of 2018, and whether that guidance will be extended to include more.

The FCA stated that it will conduct a separate consultation in Q1 of 2019, to look at whether it should prohibit the sale of derivatives which reference crypto assets.