UK’s Task force finally Publishes Report Stating pros & cons of Cryptoassets

A Cryptoasset Taskforce based in the UK has reported a range of possibilities of risks and benefits representing the cryptosphere. It seems that a strong action is needed to address these issues within the time.

The UK Taskforce is said to consists of the HM Treasury, the Financial Conduct Authority (FCA) and the Bank of England (BoE). The Taskforce was launched back in March by Philip Hammond, the Chancellor of the Exchequer.

The report was published by the Taskforce after a detailed study and report over the ever-growing market of cryptocurrency.

It is very clear through the survey that how the Decentralized Ledger Technology has the potential to grow in the foreseeable future. But at the same point has a few disadvantages too.

The report published sets out regulations to comply with. The report also stated various aspects that would be either solved or improved by the new set up Taskforce.

The aspects included, actions to maintain UK’s international reputation as a safe and transparent place to do business. Protection of consumer is also their motive of the Taskforce.

The framework of the Taskforce for cryptoassets as published in the report:

The taskforce also commits to take forward actions that will ensure high regulatory standards to maintain financial markets.

There also took place a roundtable conference of the stakeholders and international counterparts with the established Taskforce. This roundtable conference took place on 23rd July 2018. It was said to be conducted by:

• Gwyneth Nurse, Director of Financial Services at HM Treasury
• Christopher Woolard, Executive Director of Strategy and Competition at the Financial Conduct Authority
• Tom Mutton, Director of Fintech at the Bank of England

FCA released a statement saying:

“Given the complexity and new challenges presented to traditional forms of financial regulation, more time is needed to consider how regulation can meaningfully address the risks posed by exchange tokens, such as bitcoin. The government will issue a consultation in early 2019 to further explore whether and how exchange tokens, and related firms such as exchanges and wallet providers, could be regulated effectively.

According to the report, ICOs have the potential to present a number of opportunities, including supporting innovation and competition, improving efficiency, addressing financing gaps and building a new investor and customer base.

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