x
Verified on Po.et Created with Sketch. Verified on Po.et

U.K. Fintech Sector Strategy Announces Crypto Asset Task Force

by

        U.K. Fintech Sector Strategy Announces Crypto Asset Task Force
U.K. Fintech Sector Strategy Announces Crypto Asset Task Force

Today, March 22, 2018, at the government’s second International Fintech Conference, Exchequer Chancellor Philip Hammond announced the launch of a Fintech Sector Strategy that looks to keep the U.K. on the forefront of the industry.

The primary component of this new strategy will be the introduction of a Crypto Assets Task Force composed of representatives from the Bank of England (BOE), HM Treasury and the Financial Conduct Authority (FCA). The purpose of this team will be twofold: promote the U.K.’s position as a leader in the emerging world of digital currency, while concurrently establishing the infrastructure needed to monitor the “potential risks” associated with the crypto space.

This development follows a recent shift in the British government’s public attitude toward cryptocurrency. In January 2018, at the World Economic Forum, Prime Minister Theresa May voiced her apprehensions toward virtual currency and suggested that stronger regulations should be considered “very seriously” — a sentiment that was echoed earlier this month by BOE governor Mark Carney who, in an interview with CNBC, decried the “speculative mania” that surrounds crypto assets.

His rhetoric, and that of the British government, has since changed. On March 18, preceding the G20 summit, Carney released an official letter through the Financial Stability Board (FSB) that dramatically reasserted his position. It stated that at its current size “crypto assets do not pose risks to global financial stability” and that their underlying technologies “have the potential to improve the efficiency and inclusiveness of both the financial system and the economy.”

He did admit, however, that due to the rapidly evolving nature of the market, that this initial assessment could change — and change quickly. As digital currency becomes more integrated and interconnected with the economic system at large, emphasis should be placed on “support monitoring and timely identification of emerging financial stability risks.”

It would seem that the announcement of the Crypto Assets Task Force represents an attempt by the British government to follow up on this recommendation. By combining three of its most preeminent financial institutions, the U.K. hopes to create a watchdog with the resources necessary to monitor the immediate risks and long-term benefits of this developing technology. Whether this move will be adequate to alleviate anxieties that have arisen in response to the recent volatility of the crypto marketplace is yet to be seen.

Recommended

Samsung Galaxy S10 Wallet Supports Ether, CryptoKitties — But Not Bitcoin

Bitcoin Magazine checks out the new crypto wallet feature in the Samsung Galaxy S10 and discovers a whopping omission.

Colin Harper

IBM Exec Forecasts a Million-Dollar Bitcoin — When a Sat Will Equal a Cent

“If bitcoin is at a million dollars, then [one] satoshi is on value parity with the U.S. penny," said Jesse Lund, vice president of Blockchain and Digital Currencies at IBM

Jimmy Aki

Morgan Creek Bags $40M Raise, Attracts Industry First Funding From Pensions

Two pension plans from Fairfax County, Virginia, the $1.43 billion Police Officer’s Retirement System and the $3.9 billion Employee’s Retirement System, were the lead investors.

Colin Harper

UnionBank Launches Two-Way Bitcoin ATM in the Philippines

So far, the UnionBanl hasn't mentioned its intention to deploy more bitcoin ATMs in the future, but it will be monitoring the usage and performance of the ATM, which could impact what it does next.

Jimmy Aki