The government of Britain has announced plans to launch a task force for crypto assets to curb the potential risks in the sector while capitalising on its benefits.
The new task force will include people from HM Treasury, Bank of England, and the Financial Conduct Authority. The move is part of a broader strategy for the fintech sector.
Chancellor of the exchequer Philip Hammond said: “From the square mile in London to Scotland’s Silicon Glen, the UK leads the world in harnessing the power of fintech as we create an economy fit for the future. I am committed to helping the sector grow and flourish, and our ambitious Sector Strategy sets out how we will ensure the UK remains at the cutting edge of the digital revolution.
“As part of that, a new task force will help the UK to manage the risks around Cryptoassets, as well as harnessing the potential benefits of the underlying technology.”
Regulators across the globe have turned a hawk’s eye on cryptocurrencies in the recent times due to their volatility.
Last month, the Treasury Committee launched an inquiry into digital currencies and the opportunities and risks they pose to consumers, businesses, and the government.
At that time, chair of the treasury committee Nicky Morgan said: “People are becoming increasingly aware of cryptocurrencies such as Bitcoin, but they may not be aware that they are currently unregulated in the UK, and that there is no protection for individual investors.
“The Treasury Committee will look at the potential risks that digital currencies could generate for consumers, businesses, and Governments, including those relating to volatility, money laundering, and cyber-crime. We will also examine the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace traditional means of payment.”