With the fast expansion of cryptocurrencies worldwide, and as more governments ponder regulating them, the UK has entered the fray.
Speaking to MP’s in the House of Commons on January 26, the current Member of Parliament for West Suffolk Matt Hancock argued the case for the UK policies being made around new innovations such as FinTech and cryptocurrencies.
According to Hancock, these new technologies have the ability to disrupt the finance sector and can be an “economic driver” for the UK post-Brexit, stressing the importance of getting the new legislation right on them to avoid stifling innovation.
Hancock said on the policy:
“Will the Minister ensure at the same time as he develops this policy, ensure the UK is also home to innovations like FinTech, and the extraordinary growth of cryptocurrencies. These innovations have the potential to disrupt finance, just as social media has disrupted communication, or online shopping has changed retail.”
FinTech and Crypto used for transparency
Notably, the United Kingdom wants to employ these technologies not only so that it does not fall behind financially, but also because the tech is transparent and will aid in the battle against crime and fraud.
“The UK has the chance to be the home of FinTech, which can not only be an economic driver, but also help cut fraud and financial crime because of the transparency that it brings,” he said.
While on his Twitter account, Hancock added:
“Done right we can increase transparency and lead in a new world-changing technology.”
Finally, it’s worth mentioning that the United Kingdom has been tightening its laws against cryptocurrency exchanges operating there in recent months. Crypto exchanges will be compelled to pay the 2% digital service tax following a new update to the Her Majesty’s Revenue and Customs (HMRC) regulations.