Analysts and UK business owners have decried the plans of the government to regulate cryptos and related technology. The experts have described this move as a blunt instrument approach. The Telegraph, British daily news outlet, reported Monday.
Bitcoin (BTC) Price Today – BTC / USD
The analysts made calls to step up the regulatory power of the Financial Conduct Authority on cryptocurrency as reported last month. They alleged that it was focused on anti-money laundering and consumer protection.
Currently, a joint report from venture capital dun Novum Insights, British Federation Authority and crypto exchange TodaQ has warned about the overly reaching regulation.
Bad regulation is worse than no regulation
According to the document, as reported by the Telegraph, a bad regulation is worse than no regulation. The implications of this could affect the FinTech scene in the UK.
BBFA chief executive Patrick Curry said,
“It is a very blunt instrument approach, and I haven’t seen this in other countries,”
“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.”
So far, new agencies have been unable to get grips with the domestic crypto ecosystem. This is the case despite London’s place as the home to some of the crypto industry’s popular names such as Bitstamp and the trading platform eToro.
FCA chairman, John Griffith-Jones said that the FCA had initially started a crypto task force in March this year. The goal of the agency was to assess the phenomenon at the time.
Griffith-Jones says that cryptos have the potential to cause harm to the customer and recommended that it should be brought within the regulatory perimeter.
Bitcoin price analysis
Currently, BTC is being traded at $6,478 and is still declining steadily. Its volatility index dropped sharply over the weekend, because of small trading volumes. The reduction in volatility suggests that the bear market this year will last longer than expected.
According to the NVT coefficient, we are currently in the middle of a long-term bear market. This body divides BTC’s market capitalization by the average daily volume transmitted through the Blockchain. Willy Woo, a popular cryptoanalyst, held a similar opinion.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.