A House of Commons committee sees an urgent need to regulate cryptocurrencies in the U.K. and tame what has become a “Wild West” market.
In its report, the Treasury Committee said the lack of regulatory oversight leaves investors vulnerable to malicious activity. The committee said the government must act now.
“Given the high price volatility, the hacking vulnerability of exchanges and the potential role in money laundering, the Treasury Committee strongly believes that regulation should be introduced,” said Nicky Morgan MP, and chair of the Treasury Committee.
MarketWatch reported members of the cryptocurrency industry formed a self regulatory organization in February to create principles and a code of conduct for market participants. (A similar group was formed in the U.S. last month.)
But the Treasury Committee said that’s not good enough because the standards are voluntary. That means many firms could choose to ignore them. Thus, it concluded, formal regulation would hold the industry more accountable. Read more here.