It’s hard to predict what to expect from the pending cryptocurrency review. If the prevailing rhetoric from British banks and financial institutions is anything to go by, the FCA could produce a report that continues to keep cryptocurrencies at an arms length.
They’ve made no qualms about the significant interest in the applications of Blockchain technology as a means of verifying transactions in traditional financial systems, but whether they will produce an optimistic outlook on the likes of Bitcoin and its altcoin brethren remains to be seen.
He highlighted how the UK government has already donated 10 mln pounds to various Blockchain projects ranging from energy to voting systems.
Encouragingly, Hancock also made mention of the Cryptoassests Taskforce, which he claims ‘will set out an approach that balances the need to encourage innovation and growth, whilst managing the risks’.
Nigel Green, chief executive and founder of financial consultancy deVere Group, believes:
“First, because of the sheer numbers of people it will directly affect. There’s been incredible growth of the cryptocurrency market in recent years. This growth can be expected to soar further and quicker over the next decade as more and more investors pile into the likes of Bitcoin, Ethereum, Ripple, Litecoin and Dash, and as adoption by businesses and organisations further increases.
“Second, the FCA is one of the world’s most influential and respected financial regulators. As such, it can be expected to help shape and define the thinking and policies of regulators globally, the majority of which in the major economies are now also carefully looking at the crypto space.”
Should the FCA follow in the footsteps of the SEC and CFTC, cryptocurrencies could see a surge in support in the UK and Europe once the report is published. This will be a long awaited boost for the market which has suffered in the first quarter of 2018.