Britain Regulators Take It Easy As Bitcoin Takes A Dive
Bitcoin and many crypto assets have been dropping in price lately, which could be credited to numerous reasons. Some experts believe that the attack that the SEC is putting down on ICOs is part of the cause, while others put the blame on the unsuccessful hard fork of Bitcoin Cash. Either way, it comes at a perfect time for Britain’s financial watchdog, which has recently been feeding the pressure to regulate.
With the downturn of Bitcoin’s price, it is possible that the watchdog will relax on the “radical action that could deter investment and financial innovation,” based on a Reuters report on Tuesday. Last year, there was substantial growth in the crypto market , which ultimately led to a demand for economies to create regulatory framework.
However, in the last year of losses, bringing Bitcoin down to below $4,500, the need for regulation is much less critical. The regulators spoke at a conference about how they were prioritizing the way that these crypto assets fit into pre-existing rules, before they were discussing the reforms.
Gillian Dorner, the deputy director for financial services at the finance ministry of Britain, said,
“We want to take the time to look at that in a bit more depth and make sure we take a proportionate approach.”
Right now, the concern is that Britain needs to find a way to balance the innovations of the crypto market with the protection and stability that consumers need. Christopher Woolard, the Financial Conduct Authority’s executive director for strategy and competition, noted that there are “grey edges” on the current regulatory measures.
The FCA is expected to consult about these perimeters for crypto assets by the years end. Woolard noted,
“This will help clarify which cryptoassets fall within the FCA’s existing regulatory perimeter, and those cryptoassets that fall outside. Subsequently, the finance ministry would need to determine if the perimeter needed to change as well.”
Just last month, the FCA and the Bank of England suggested banning derivatives products from being sold to retail customers. However, this action by just a single country cannot reinvent the marketplace, and the FCA intends to collaborate internationally to find a common ground. Thus far, regulatory bodies around the world have yet to agree on these changes.