Britain can set the standard for cryptocurrency regulation if it acts fast, lawmakers have been told. The lobbying group for Britain’s financial services sector, has published a white paper calling on Britain to put in place tailored regulations for the cryptocurrency sector. The paper said Britain could influence global policy by setting the standard for regulating crypto and take advantage of the booming sector by luring businesses with the certainty of rules. At a round table at Consensus, a panelists of international regulators all agreed that cross-border collaboration on rules are possible. However, they all admit that the digital assets industry presents a new world for regulators.
The call for regulation comes amid a renewed global boom for cryptocurrencies. Loretta Joseph, a digital assets consultant, and advisor to Mauritius’ Financial Services commission, said that one of the UK’s other strengths in regulatory leadership is its role in proliferating Common Law around the world. Through the UK’s colonial legacy, Common Law has spread throughout the world to both financial hubs and emerging markets; from the US, Canada, Hong Kong, Singapore and Bermuda to Pakistan and India. With that comes a legal framework that’s easily portable across jurisdictions.
“Because of the UK, we have common law principles. So it’s much easier for standardization and harmonization,” Joseph said. “I think the Commonwealth with it’s 53 countries and having very aligned regulations and laws helps a lot of these emerging markets.”
The UK has a great track record in supporting innovation with regulation. Its regulatory Fintech sandboxes have been copied around the world. One example is the UK’s Financial Conduct Authority’s sandbox. It has evolved into the Global Financial Innovation Network Initiative, which was first launched in the earliest days of Fintech. It now has participation from the major regulatory agencies on both sides of the Atlantic. These global regulatory agencies are seemingly willing to work towards future regulations together, including the US Security & Exchange Commission (SEC). Digital assets are different things in different parts of the world. However for Britain, now is the time to capitalize on the valuable opportunities presented by cryptocurrencies.
