The UK Treasury Select Committee has recommended that crypto-assets should be regulated – a point that demonstrates a move into mainstream finance with the sector likely to rally as a result, according to Nigel Green, founder and CEO of deVere Group.
Cryptocurrency champions deVere, who launched the exchange app deVere Crypto earlier this year, welcomed the unanimously-agreed report by the Commons Select Committee on crypto-assets for its Digital Currencies Inquiry.
The report concludes: “Regulation [is] needed for…crypto-asset market” and that the “ambiguity of the UK Government and regulators’ position is clearly not sustainable”, after comparing the current environment akin to ‘wild west’ frontier period during the formation years of the modern United States.
“Cryptocurrencies are here to stay. In fact, in today’s increasingly digitalised, globalised world, demand for these digital, global currencies is only set to soar in the coming years,” said Green, pictured left.
“As such, I welcome the Treasury Select Committee’s proactive and progressive approach, which could be the first step to providing regulations to protect consumers and prevent illicit activity.
“The conclusion made by the Committee about cryptocurrencies puts them on the right side of history. Its findings that these assets should be brought into a regulatory framework demonstrates once again that they are now a part of mainstream finance.”
Green added that regulation of the crypto sector is now “inevitable” and will give investors even more protection driving “confidence in the burgeoning market is likely to drive prices higher”. And today’s signal from the Treasury Select Committee could have the same effect, he concluded.
This inquiry follows the Financial Stability Board (FSB), the international watchdog chaired by Bank of England Governor, Mark Carney, releasing a report in the summer that concluded Bitcoin and cryptocurrencies do not pose a risk to the global financial system.