Nations across the globe are trying to crack down on cryptocurrencies and regulate the digital assets. Lawmakers and government officials are extremely worried about the potential losses and risks that the 21st-century currencies bring. Furthermore, growing fears of illegal activities such as money-laundering and terrorism funding have been at the center of numerous debates regarding regulations for coins and tokens. Gradually, we have seen countries take action in attempts to introduce new laws and to educate their populations on potential risks and danger of investing in those volatile markets.
It is now the United Kingdom’s turn to announce that they will investigate crypto markets. On Thursday, the U.K. Treasury released a statement announcing the launch of a supervised inquiry into cryptocurrencies. The aim of this task is to better understand the virtual currencies, how they work and the role they play in the country’s economy. The nation is hoping to favor innovation, while at the same time ensuring that issues are neutralized and investors made aware of risks.
The Chair of the Treasury Committee, Nick Morgan, stated “People are becoming increasingly aware of cryptocurrencies such as Bitcoin. The Treasury Committee will look at the potential risks that digital currencies could generate for consumers, businesses, and Governments, including those relating to volatility, money laundering, and cyber-crime.”
This news is coming right before the G20, where the EU will discuss the blockchain and cryptocurrencies, their regulation and adoption. This will be an important moment as it will be one of the first times that digital currencies will be discussed by the whole union and all of its members.
U.K. investors will now wait for the government’s conclusions drawn from the inquiry and the impact they will have on cryptocurrency markets. This should also influence other countries to take the same approach regarding digital currencies. If results are positive and lawmakers decide to encourage and push for the development of the blockchain technology and tokens, it could be very beneficial as other nations might follow.
TLDR: The U.K. Treasury has announced that they are starting an inquiry into cryptocurrencies to understand how they work and how they can affect the country’s economy.