UK Watchdogs to Release Cryptocurrency Report

Recognizing that cryptocurrencies do not directly fall within the scope of the Agency, FCA stressed that some aspects of their use are within its competence
09 April 2018   379

According to the plan of the Financial Conduct Agency (FCA) of Great Britain for 2018/2019, it, intends to publish a report on crypto-currencies together with the UK Treasury and the Bank of England. 

Technology plays a pivotal role in delivering financial products and services. It enables firms’ innovation (see the Innovation, big data, technology and competition crosssector theme) and supports their business strategies. New technologies can lead to harm if they are not safely adopted and managed. For example, new technologies such as distributed ledger (blockchain) and artificial intelligence rely on access to sensitive and high quality data. But new technologies present opportunities for helping firms to meet Know Your Customer or anti-money laundering requirements more efficiently.
 

FCA Business Plan

The "key activity" of the innovative FCA program will be directed, among other things, to crypto-currencies - FCA plans to assist the companies with regulatory recommendations, as well as to keep up with new market trends such as "ICO and distributed registry technology."

The FCA report also says that the cryptocurrencies themselves do not fall under their jurisdiction, but some models of using cryptocurrency packaged in other financial instruments fall under it, which makes the overall landscape more complicated.

FCA also notes that it has already begun to regulate work with cryptocurrency derivatives, including futures, contracts for price differences and options.

Agency will continue to monitor parameters such as the number of new entry points to the market and the emergence of new innovative products to understand whether fintech can help "improve competition for the benefit of customers.

US Congressman to Call for Crypto Ban

As reported, Brad Sherman has called for a blanket ban on cryptocurrency buying
19 July 2018   77

American authorities should ban cryptocurrencies and mining. Such a statement on was made by Congressman Brad Sherman during the hearings of the Committee on Financial Services at the US House of Representatives, CoinDesk reports.

According to Sherman, in the future, cryptocurrencies may become a form of money, but at the moment they are used either by rogue states to bypass American sanctions or by individuals to evade taxes.

We should prohibit U.S. persons from buying or mining cryptocurrencies.
 

Brad Sherman

Congressman, US

At the same time, Norbert Mitchel, director of the Data Analysis Center of the Heritage Foundation, noted that the possible use of crypto-currency for criminal purposes should not stain other possibilities of digital currencies.

Yes it is true that criminals have used bitcoin, but it's also true that criminals have used airplanes, computers and automobiles. We shouldn't criminalize any of those instruments simply because criminals used them. Those components I believe are the main barriers to widespread adoption in the U.S.
 

Norbert Mitchel

Director of the Data Analysis Center, Heritage Foundation

As Eswar Prasad, senior professor at Cornell University, said, the existence of cryptocurrencies had the potential to impact the financial services system, particularly the payments system, in positive ways.