The UK’S plans to “robustly” regulate the cryptocurrency industry must be championed and highlights that “digital is the future of finance”, according to the CEO of deVere Group, Nigel Green.
This comes as the UK government plans to bring the cryptocurrency sector under the umbrella of mainstream financial services regulation.
The UK Treasury said earlier this week it would unveil a series of proposals to “regulate a broad suite of cryptoasset activities, consistent with its approach to traditional finance.”
It will also temporarily backtrack on a previous vow to align the regulation of crypto promotions with the regulations applied to stocks, shares and insurance products.
Green CEO notes: “The UK’s decision to regulate crypto must be championed as digital currencies, including Bitcoin, are set to play an ever greater role in the domestic and international financial system, and they should be held to the same standards as the rest of the system,” says Green. “The news that digital currencies are being brought into the regulatory tent in one of the world’s largest economies and most highly-regulated markets shows that crypto is now mainstream. It has come of age.
“A strong regulatory framework will help protect investors, tackle criminality, and reduce the potential possibility of disrupting financial stability,” Green adds. “It also offers a potential long-term economic boost to the UK as digital is the inevitable future of finance. This move will help further position Britain as a global hub for crypto, and fintech, more generally.
“It will help attract the businesses of tomorrow – and the jobs they create – in the UK, as effective regulation gives them the confidence they need to think and invest long-term,” he continues. “We also expect this development comes as the government has expressed interest in launching its own ‘Britcoin’, or central bank-backed digital currency (CBDC).
This news will further strengthen the case for cryptocurrencies and is likely to have a positive impact on prices of the major digital tokens, says Green.
“The move to regulate illustrates that retail and institutional investors are increasingly aware of the inherent characteristics of cryptocurrencies like Bitcoin which has the core values of being digital, global, borderless, decentralised and tamper-proof,” he says.