The warning follows a plan by the MPs to empower the Financial Conduct Authority to curb illegal activities in the crypto market. The controversial point that attracted businesses’ concerns is the high level of Bitcoin focus and the potential damage to other types of digital assets.
British Business Federation Authority (BBFA) Chief Executive Patrick Curry claims that inappropriate legislation might force cryptocurrency exchanges out of the UK market. That would damage the country’s standing reputation as a fintech hub.
The BBFA in conjunction with venture capital fund Novum Insights, law firm Baker Botts and crypto exchange TodaQ issued a report that states that lack of regulation is better than bad regulation.
According to the BBFA Chief Executive Patrick Curry, the authorities are using a blunt instrument approach that’s not present anywhere else in the world. He highlighted that blockchain and cryptocurrencies are still in the early development and discovery stages.
Companies are experimenting to find the best implementation for optimizing the daily lives of people and business operations. Curry also expressed his concern about the law of unintended consequences.
Baker Bott’s corporate technology partner Neil Forster called for sophisticated legislation to avoid regulating other digital assets like stocks, bonds, and shares under the same rules governing one currency.
The MPs are facing difficulties in their bid to respond to the demands of the crypto market regulation after various reports of money laundering and fraud have raised vulnerability alarms for the investors. The Bank of England, HRMC, and the Financial Conduct Authority (FCA) are jointly working on a new regulation proposal.
Earlier this year, the Governor of the Bank Of England, Mark Carney, claimed that Bitcoin was a failure as a currency by turning into a global speculative mania showing all the hallmarks of a “bubble.”