A U.K. government task force has been launched to study possible regulation in the emerging cryptocurrency sector.
The U.K.’s Cryptoassets Taskforce, which includes representatives from the U.K. Treasury, the Financial Conduct Authority (FCA) and the Bank of England, held its first meeting on May 21. At that meeting participants agreed to examine the cryptoasset sector. to explore the potential benefits and challenges of using distributed ledger technology (blockchain) in financial services and to consider whether any regulation is required in the space.
“The technologies that underpin cryptoassets have the potential to deliver benefits both to the financial system and to the economy it serves. This taskforce will enable us to work closely with the Treasury and the FCA to explore how the opportunities posed by these technologies can be realised, while also tackling the risks arising from cryptoassets,” said Dave Ramsden, deputy governor of the Bank of England, in a statement.
The government says that the task force represents a central part of its efforts to understand and engage with new technologies in the financial services sector. The task force plans to host a roundtable in July, and aims to publish a report in the third quarter.
“Cryptoassets have been an area of increasing interest for markets and regulators globally including the FCA. We look forward to working with our counterparts at the Bank of England and the Treasury as part of the taskforce to develop thinking and policy on cryptoassets,” said Andrew Bailey, chief executive of the FCA, in a statement.