Regulation on Crypto — UK’s opportunity to become the World Leader

Key terms like bitcoin, blockchain & crypto usually go hand in hand with describing the key attributes of decentralised digital currencies. If you add regulation into the equation you will either lose your audience or potentially enrage a crypto maximalist. Cryptocurrency’s short history not only as an asset but as a market has grown and evolved on its own as a without any government or regulatory oversight. This uninhibited growth has allowed crypto and blockchain to grow and in many ways and many different markets, some legal, some illicit.

Cryptocurrency’s short history isn’t a swan song and lacks any real appeal for investors, other than an asset that has historically appreciated over long periods, can be held in self custody, or traded 24/7 365 days a year. The question remains, what will it take for blockchain, bitcoin and crypto to be taken seriously? Regulation is the answer.

What does regulation need to achieve?

Market Regulatory oversight is created to ensure safe and fair access to a market for all participants. Regulation is also there to ensure illicit funds remain foreign from mixing with legitimate funds in a marketplace. Bitcoin and cryptocurrencies are inherently decentralized, global and largely anonymous. These key aspects make cryptos and blockchains impossible to regulate or adhere to even the most basic privacy laws.

Market Regulatory oversight is created to ensure safe and fair access to a market for all participants. Regulation is also there to ensure illicit funds remain foreign from mixing with legitimate funds in a marketplace. Bitcoin and cryptocurrencies are inherently decentralized, global and largely anonymous. These key aspects make cryptos and blockchains impossible to regulate or adhere to even the most basic privacy laws.

Regulating cryptocurrencies is impossible from a technological and global standpoint. It will be up to the exchanges, fiat on-ramps and custody providers in each region to work with regulators to ensure market participants are properly protected. Threats exist both inside the existing market and outside the cryptocurrency market trying to obfuscate the true source of funds. The Financial Conduct Authority (FCA) in the United Kingdom states that regulation of crypto assets is aimed at the prevention of anti-money laundering (AML) and financial crime prevention (CTF). Regulation, in a clear and concise format, is what blockchain and virtual currencies need to grow and thrive in the modern financial world.

Continue reading: https://blog.coinpass.com/blog/regulation-on-crypto-uks-opportunity-to-become-the-world-leader

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store