Businesses and analysts in the UK have hit back at government intentions to regulate cryptocurrencies and related technology describing them as “blunt instrument approach,” telegraph reported.
Cointelegraph reported in September that they called to step up the level of power in the country’s financial regulator, the financial conduct authority has over cryptocurrency.
A joint report from the British Business Federation Authority (BBFA), venture capital fund Novum Insights, and cryptocurrency exchange TodaQ must warn them about overly far-reaching regulation.
As indicated to document seen by telegraph, “bad regulation is worse than no regulation at all,” with the implication of knock-on effects for wider UK fintech scene.
“It is a very blunt instrument approach and I haven’t seen this in other countries,” BBFA chief executive Patrick Curry told the publication, including:
“The use of this technology is still a voyage of discovery and these technologies are being refined for different types of use. My concern is the law of unintended consequences.”
The Telegraph reports that the UK has so far been slow to get to grips with domestic cryptocurrency system even though London is where some are from such as Bitstamp.
The FCA tries a cryptocurrency ”task force” the place of which was to assess “what to do about”, FCA chairman John Griffith-Jones said at the time.
He included that cryptocurrencies had the “the potential of causing consumer harm unless brought within the regulatory perimeter.”