The British news journal Telegraph reports today about a new joint research, conducted by the cryptocurrency exchange TodaQ, the market research group Novum Insights, the British Business Federation Authority (BBFA) and the law firm Baker Botts. The report claims that too harsh regulations will ruin the entire crypto market in the UK. Since legal attention seems to be quite focused on the Bitcoin’s status, other financial assets could be harmed, too.
Bad regulation is worse than no regulation at all,
Says the report, quoted by Telegraph.
The statement comes as an answer to the Members of the Parliament’s plan to regulate crypto and ICO’s market through the Financial Conduct Authority. The latter aims to fight illegal financial activities in the country and to prevent money laundering. However, the BBFA alerts that if not made adequately, the legislation process would only force investors and crypto businesses to leave the Kingdom.
As CryptoFrog reported, some companies like Coinbase has already decided to move abroad due to the forthcoming Brexit.
Banks on the Island are worried that people use their credit cards to invest in cryptos, which would lead to huge losses of non-paid back loans. At the same time, the government plans to fight the dark web criminal abuse of cryptos by imposing new rules on trading: investors to reveal their names and personal information.
Patrick Curry, the CEO of BBFA, commented on this plan that:
It is a very blunt instrument approach and I haven’t seen this in other countries. The use of this technology is still a voyage of discovery and these technologies are being refined for different types of use. My concern is the law of unintended consequences.
The research group calls for new, more ‘sophisticated’ ways of regulating the crypto market regarding its technological specifics. Now, the HMRC collaborates with Bank of England on a new regulation project. A timetable of the draft though is not yet announced.