TheCityUK, a financial lobbying firm based in the United Kingdom, calls for more security for crypto assets, claiming that they expose retail investors to extremely unpredictable markets.
Companies that sell cryptocurrency to customers, according to a lobbyist’s study, must be licensed. This year, nearly ten million people in the United Kingdom owned digital properties, according to the study. This is a 558 percent rise from the previous year.
To attract investment, better regulation is required
Despite its support for control and security, TheCityUK is not opposed to cryptocurrencies in general. Indeed, the lobbyist believes that having a complex answer would help London attract more crypto-based businesses.
“Government and regulators have an important part to play,” CEO Miles Celic said in a statement. “They must set safe and robust rules for this burgeoning sector while ensuring they don’t inadvertently squash good ideas before they can mature and flourish.”
This year, TheCityUK illustrated the United Kingdom’s presidency of the G-7 community of countries. According to the lobbyist, this would provide the country with a forum to lead crypto scrutiny, allowing for collaboration with other countries.
TheCityUK, on the other hand, emphasized that the changes would have to happen quickly. According to the lobbyist, some believe that the United Kingdom is falling behind other countries regarding crypto frameworks.
“Clarity on the regulation of crypto-assets and related services such as issuance, trading, and safekeeping will determine firms’ appetites to use the U.K. to launch innovative products and services,”it said.
Skepticism from the Bank of England
Meanwhile, Governor of the Bank of England Andrew Bailey retains his distrust of the new asset class. In contrast to the lobbying business, he believes there is a risk of financial innovation “being carried away.”
Although Bailey acknowledges that financial progress, in general, is beneficial to the economy, he laments crypto’s lack of intrinsic value. Bailey said he doesn’t want to be labeled a Luddite, but crypto assets are “dangerous” despite their “massive enthusiasm.”