Cryptocurrency Regulatory Enforcement To Be Late by 2 Years in the UKOctober 15, 2018
James Kaufmann, the Legal Director at Reynolds Porter Chamberlain (RPC) UK, stated that it will take at least two years for regulatory bodies to introduce and enforce laws pertaining to regulation of cryptocurrencies.
While talking about the subject matter, the Legal Director stated that there are a couple of major reasons for the onset of the delay. He stated that the scenario under which the proposal from the Treasury Committee will progress to the House of Commons will be dependent on the best case scenario. The procedural timeline he says will cover up for a period of two years.
RPC is the UK based corporate law firm that has offices in Asia and the UK. There are more than 80 partners in the firm. Of note, ever since 2014, the law firm has been named the law firm of the year three times in a row.
Kaufmann stated that the procedural formalities that cover up for the progression of the bill are pretty lengthy. When considering the proposal provided by the HM Treasury, it has just started to move forward, which means the completion of the formalities will span 2 years.
Considering the subject matter is complex and the latest, “Bringing the complex and fast-evolving trends in cryptocurrencies into a regulatory framework is a lengthy and complex process.”
In the press release, James Kaufmann further added, “Big issues like unresolved Brexit issues are already occupying a lot of regulator’s time” Of note, while the UK would like to wrap up the Brexit matter, “talks might not be wrapped up in November as the UK would like.”
He further re-instated that considering the protocol formalities and the timeline taken for regulatory changes in the past even a two-year timeline is a very ambitious approach.
He implied, “Even for minor changes in the regulatory aspects, it will take even years to amend the regulatory regime.”
For instance, in the home reversion plans, it took 2 and a half years for the original announcement of the Treasury to come in to force. The announcement was made on May 10, 2004, and it came in to force on November 6, 2006.
In order to regulate the cryptocurrency industry, the Treasury Committee will need time to study the happenings in the industry, monitor and draft the regulations. Apart from this, a further consultation period should be allotted to publish changes in order to set a date of implementation.
Even under a fast-tracked approach, it can still take 2 years, which he stated thus, “years for regulations to cover the UK cryptocurrency market that treads the middle ground between protecting retail participants and allowing the UK’s cryptocurrency market to thrive.”
The coming of new regulations will only increase the role of the Financial Conduct Authority. It is about having the wherewithal for the regulations necessary for the crypto industry and on whether the FCA has it.