Realizing the importance of regulation for Bitcoin, the UK Treasury is seeking advice from members of the Bitcoin community. Looks like the government agency is inspired by the steps being taken by NYDFS head Ben Lawsky who brought in BitLicense to regulate Bitcoin companies in New York so that consumers’ rights are protected.
Thus, following in the footsteps of regulation practices like BitLicense out of New York’s regulatory body, the UK Treasury is willing to frame guidelines and regulations so that consumers’ rights are protected in the country. However, as there is not much information available, the government agency is inviting the stakeholders to express their views.
To help further their understanding on regulation, the UK Treasury is inviting the stakeholders and asking them to furnish information. In that context the law enforcement agencies, financial regulators along with the general public and “FinTech” firms, have all been invited by the government agency which according to them give great insight about the digital currency.
Earlier, ForexMinute reported that NYDFS’s Ben Lawsky revealed his plans for transitional BitLicense at Money2020 after he faced a lot of criticism from stakeholders when he gave a ninety-day period for feedback. A general observation is that the Bitcoin community protests any regulation that is strictly against innovation and controlling of the digital currency.
The UK Wans to Have an Edge in Digital Currency Ecosystem
Taking the first step to understand and then frame any regulation, the UK Treasury has a huge challenge in front of it. The organization says that it is considering the potential benefits of digital currencies to customers and the technology that underpins them, and whether it should take action to support innovation in this area.
Also, according to the UK Treasury it is looking at the potential risks, and assessing whether action is required to address any concerns. Earlier this year chancellor George Osborne launched a review supposedly planning to open their arms in the UK to digital currency. Osborne had then said that he wanted to make London the center of digital currency activities.
However, the study has not yet been finished and assessments regarding the benefits and threats of Bitcoin to the UK’s economic structure are still not clear. Osborne is willing to provide opportunities that harness innovation in finance, alongside the existing world class knowledge and skills in financial services that ensure Britain remains the center of financial activities.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org