United Kingdom is actively developing standards for the regulation of the stock market
The Finance Committee of the British Parliament published a “final report on cryptographic assets,” which examined the various aspects of the cryptocurrency market, and described the possible ways of regulation of the industry.
The document States that the ICO does not currently participate in the regulated sphere of financial relations (FCA), and investors are not protected from fraud the organizers of IPOs of coins, as there are no formal mechanisms of redress and reparation to affected consumers.
At the request of the British authorities, on the stock market there is the spirit of the “Wild West lawlessness”, and self cryptomnesia, which sets the rules and regulations of doing practical activities, to operate exclusively on a voluntary basis. Inevitably, some organizations simply ignore the existing rules of self-regulation, which is clearly not enough.
The Department also emphasized that regulators should seriously assess the risks associated with scriptactive, and critically evaluate the potential of the industry. If preference is given to the development, regulation can lead to positive results for the market of digital assets, including the transition to a more Mature business model and increase the liquidity of the industry. The report also says that if Britain will develop a suitable legal environment for cryptographic assets now, the state could become the global centre of cryptocracy.
The Finance Committee has not paid attention to the “problem of volatility in cryptocurrencies,” noting that despite the fact that a number of investors could earn solid capital during periods of growth, all the rest have great chances to lose big in the case of the collapse of the market.
Commenting on the report, Nicky Morgan, Chairman of the Treasury Committee, said:
“Bitcoin and other scriptactive while they live their lives. This unregulated industry that is jeopardizing the investors facing many risks. Given the high volatility of prices, hacks, vulnerabilities of exchanges and the potential role of cryptocurrencies in money laundering, the Finance Committee firmly believes that regulation should be introduced. It is unacceptable for the government and regulators to refrain from specific actions on the regulation of this sphere. As a minimum, the regulation should be aimed at protecting consumer rights and combating money laundering”.
Recall that the Commission UK Law Commission announced in July plans to study the laws of the blockchain to provide recommendations on a transparent and clear legal framework for the innovative technology of smart contracts.
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