With Bitcoin and other cryptocurrencies rallying following the conclusion of the G20 summit in Buenos Aires recently, where no consensus among global leaders was reached with regards to crypto regulations, the debate looks set to ramp up over the next few months.
Ahead of the guidelines now expected to be issued in July, the UK government last month announced their plans to unveil a crypto assets task force. Examining both the benefits and risks of cryptocurrencies, the crypto assets task force is part of a wider-scale fintech strategy which will also see the introduction of “robo-regulation” pilot schemes designed to help firms comply with new rules.
Where regulators in other countries such as China, South Korea and Russia are cracking down on cryptocurrencies, this is a positive breakthrough by the UK who have chosen to see the benefits of working closely with the crypto community and taking their views on board, as opposed to clamping down on them.
Like everything, there are pros and cons as to why cryptocurrencies should be subject to increased scrutiny. However, too much red tape can stifle creativity and we cannot afford to let this happen to a rapidly growing industry. Regulations are here to help build the whole space. They are not against the space, but part of the solution to create a long-term blockchain and crypto space.
Each country or region’s legislation should consider striking a balance between fostering innovation and setting rules as this is healthy for the crypto industry and helps foster a greater sense of trust between crypto investors, as well as in token generation events (TGEs) that abide by regulation.
Therefore it is crucial regulators find a happy-medium: one that allows healthy regulation to be implemented and adhered to, but
