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U.K. financial regulator to oversee Bitcoin with help from the government

Alan Muli

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Earlier in the week beginning Monday the 17th of December 2018, the financial regulator in the United Kingdom announced a plan to start overseeing digital assets especially Bitcoin. The regulator announced it would do so in partnership with the government. The government of Britain pledged support towards the initiative so long as Bitcoin, in particular, would be concerned.

Period of volatility

Cryptocurrency has been through a period of extreme volatility. No central regulation governs Bitcoin and it has been the opinion of most crypto-investors that this is the main reason why the digital currency is extremely volatile.

Just like fire, it is a good servant but a terrible master. The period of volatility has seen the number of illegal crypto-related activities rise. The illegal activities have sadly been the reason why a number of crypto-business are still afloat in this period of uncertainty. Crypto-regulation will cushion crypto-investors against fraudsters and see that proper mechanisms are in place to facilitate cryptocurrency transactions. A regulatory body will also help compensate those who incur cryptocurrency losses.

The decision to oversee digital assets was arrived after a consensus between the committee and the government. Both parties are concerned about the openness of digital currencies, an issue that makes them subject to illegal activities. It is reported that the implementation of the regulation will see cryptocurrencies rid themselves issues such as money laundering.

Concerns raised by the stakeholders

Stakeholders in cryptocurrencies have raised concerns about consumer protection. According to the regulatory body, a well establish regulated system will address concerns of consumer rights and protection and will work to counter the rate of crypto-currency related fraud.

Bitcoin and other cryptocurrencies have been used as channels for illegal activities. Misuse of cryptocurrency platforms is rising at an alarming rate and hence the need to establish a regulatory body. The government of Britain is also hoping to exploit the currency for capital raising through initial coin offerings.

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