Cryptocurrencies: The UK looks at preliminary steps towards regulation

Here in the UK, and globally, the emergence of cryptocurrencies and other digital assets have created opportunities and risks. A growing social concern is that there exists a gap in the current financial markets legislation regarding new asset classes, and that this has left some consumer vulnerable to exploitation, which has in turn caused regulatory issues. Regulators have a mandate for consumer protection, but potentially require appropriate legislation to bring these new activities within their domain. Consequently, regulators are looking for political guidance on how to proceed when faced with the emergence of the nascent ‘crypto-asset management’ industry. And many…...