The UK could become a 'global centre' for crypto assets if it regulates the 'Wild west' space, MPs say

The UK's Treasury Select Committee released a report into crypto assets on Wednesday.
The report called the space a "Wild West" and calls for anti-money laundering and consumer protection regulation.
But the report doesn't dismiss crypto altogether and said the UK could become a global centre for crypto if it regulates it right.
The New York Attorney General's Office has also released a report on crypto exchanges, warning on conflicts of interest, consumer protection, and abusive trading practices.

LONDON — A report from an influential committee of UK politicians has called for regulation of "wild west" crypto assets.

Parliament's Treasury Select Committee published its report on crypto assets on Wednesday. It said the space needs anti-money laundering regulation and possible consumer protection rules.

Nicky Morgan MP, chair of the Treasury Committee, said in a statement: "Bitcoin and other crypto-assets exist in the Wild West industry of crypto-assets. This unregulated industry leaves investors facing numerous risks.

"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.

"It's unsustainable for the Government and regulators to bumble along issuing feeble warnings to potential investors, yet refrain from acting. At a minimum, regulation should address consumer protection and anti-money laundering."

The report also argued that cryptocurrencies like bitcoin are not in fact currencies but speculative assets. MPs pointed to the large price volatility in the market as one of the factors undermining bitcoin's claim to be a currency.

Despite highlighting significant risks in the market, the report did not rule out the UK becoming a home for crypto assets and crypto asset businesses if regulation is put in place.

Morgan said: "If the Government decides that crypto-asset growth should be encouraged, appropriate and proportionate regulation could see the UK become a global centre for this activity."

Crypto exploded in popularity last year as the price of bitcoin surged against the dollar. However, the entire market has crashed around 80% since its peak.

Separately, the New York Attorney General's Office published an investigation into crypto trading platforms on Tuesday evening. The report found potential conflicts of interest in the market, a lack of consumer protection, and said platforms have made little effort to crack down on abusive trading.

Business Insider has highlighted the prevalence of so-called "pump and dump" scams on secondary exchanges in the past.

The UK could become a 'global centre' for crypto assets if it regulates the 'Wild west' space, MPs say

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