UK authorities gather to discuss digital currencies

Discussion session to explore regulation of cryptocurrencies with aim of providing adequate protection without stifling innovation.

The Bank of England, Treasury Committee, HM Treasury and Financial Conduct Authority (FCA) will hold a meeting today to discuss the role of digital currencies in the UK.

The session will be the third in as many months as the group aims regulate cryptocurrencies to provide adequate protection without stifling innovation.

This session is said to discuss future use of cryptocurrencies more broadly.

“We are encouraged by the work of the Cryptoassets Taskforce, including an understanding of the opportunities associated with a properly regulated market,” said Obi Nwosu, the CEO of UK institutional cryptocurrency exchange, Coinfloor.

“The introduction of appropriate regulation, infrastructure and technological solutions will help cryptocurrencies achieve their full potential in delivering both social and economic benefits as originally intended.”

The FCA has been credited by market participants for its openness and willingness to speak to the industry about regulating cryptocurrencies.

Regulation remains a major sticking point for institutional investors looking to become active in the cryptocurrency market, as global authorities continue to analyse and consult on the digital assets.

“It’s a crucial time to address concerns regarding price volatility and market manipulation, as the market is in its infancy,” added Nwosu.

“Clear regulatory and legislative frameworks will provide additional safeguards and allow institutional players to enter the market with confidence – once they do, the increased volume and liquidity they bring will help stabilise the price, making it a safer market for consumers.”