The UK Treasury Select Committee’s conclusion that crypto-assets should be regulated demonstrates cryptocurrencies are part of mainstream finance and the sector is likely to rally as a result.
This is an observation from Nigel Green, founder and CEO of deVere Group, which launched the exchange app deVere Crypto earlier this year following a unanimously-agreed report by the Commons Select Committee on crypto-assets for its Digital Currencies Inquiry.
The report concludes: “Regulation [is] needed for…crypto-asset market” and that the “ambiguity of the UK Government and regulators’ position is clearly not sustainable.”
Mr Green affirms: “Cryptocurrencies are here to stay. In fact, in today’s increasingly digitalised, globalised world, demand for these digital, global currencies is only set to soar in the coming years.
“As such, I welcome the Treasury Select Committee’s proactive and progressive approach, which could be the first step to providing regulations to protect consumers and prevent illicit activity.
“The conclusion made by the Committee about cryptocurrencies puts them on the right side of history. Its findings that these assets should be brought into a regulatory framework demonstrates once again that they are now a part of mainstream finance.”
He continues: “As I have said previously, regulation of the crypto sector is now I believe inevitable.
“Regulation of cryptocurrencies will give investors even more protection and, therefore, confidence in the burgeoning market is likely to drive prices higher – and today’s signal from the Treasury Select Committee could have the same effect.”
This Inquiry follows the Financial Stability Board (FSB), the international watchdog chaired by Bank of England Governor, Mark Carney, releasing a report in the summer that concluded Bitcoin and cryptocurrencies do not pose a risk to the global financial system.