The U.K. Cryptoassets Taskforce, formed in March, did its research and has filed its final report detailing the need for changes in cryptocurrency regulation. The taskforce consists of the the nation’s Treasury, the Bank of England and the Financial Conduct Authority.
First, the good news: The taskforce concluded blockchain “has the potential to deliver significant benefits in financial services and other sectors in the future, and all three authorities will continue to support its development.”
Now the bad: There is “limited evidence” that “cryptoassets” deliver any benefits but they have plenty of risk.
“The Taskforce has concluded that strong action should be taken to address the risks associated with cryptoassets that fall within existing regulatory frameworks. Further consultation and international coordination is required for those cryptoassets that pose new challenges to traditional forms of financial regulation, and fall outside the existing regulatory framework,” it said. The three regulatory bodies “plan to engage with international bodies to ensure a comprehensive response.”
Besides caucusing with their foreign counterparts on their “response” to cryptocurrencies in general there will be more consultations in “early 2019 to further explore whether and how exchange tokens and related firms such as exchanges and wallet providers could be regulated effectively.”