UK Regulators Announce new Cryptocurrency Task Force
It is evident there are big things on the horizon for the cryptocurrency industry. As of right now, all markets remain prone to extreme volatility. The launch of this new UK cryptocurrency task force may not help matters much in this regard. Although such a task force is not a bad thing, it remains to be seen how this will play out.
The UK’s new Cryptocurrency Task Force
This decision by the UK’s Finance Department comes at an interesting time. More specifically, they are now looking at both risks and benefits of various cryptocurrencies. That in itself a remarkable decision and one few people expected. At the same time, the fintech sector is booming in the UK. Keeping an eye on innovation and regulation at the same time has proven to be quite challenging.
It is evident Bitcoin and altcoins pose a threat to institutional financial services. Various banks around the world have echoed such sentiments throughout 2018. The UK Finance Minister wants to ensure the nation remains at the cutting edge of the digital revolution. Cryptocurrencies can no longer be ignored as we speak and it is a positive turn of events for the industry as a whole.
It seems this will all lead to a bit more regulation in the near future. How that will pan out exactly, has yet to be determined. Regulatory measures help legitimize this industry in the long run. That is, assuming things are done in a positive manner and with an open mind. As of right now, it seems this task force will try to keep an open mind first and foremost. That doesn’t mean things will not change in the near future, though.
The Cryptocurrency Market Volatility
One of the main topics of focus for this task force is dealing with cryptocurrency volatility. Fighting this trend of market manipulation will not be easy, though. There is very little regulators can do in this regard. All markets are volatile by default, even fiat currencies and stocks. Bitcoin and altcoins are not all that different in this regard. Then again, their price swings are currently a lot bigger compared to other assets.
How all of this will affect the cryptocurrency markets in general, remains to be seen. There is a growing sense of unease across all markets as we speak. This new task force may not calm the markets down anytime soon. At the same time, it is a positive measure when looking at the bigger picture. Whether or not this will make Bitcoin “the world’s single currency”, as Jack Dorsey puts it, remains doubtful.
With the cryptocurrency industry maturing as we speak, good things are bound to happen. Regulatory approaches seemingly tend to be more positive overall. There is still a lot of work to be done until cryptocurrencies go mainstream. This new task force has the support of the UK central bank and the local FCA. Together, they will hopefully come up with a plan of action that benefits Bitcoin and its brethren as a whole.