The fraud risks related to the use of cryptocurrencies in UK and the UK's desire to be the most attractive location for global finch companies, has led to the nation's decision to create crypto asset task force. The treasury will collaborate with the Bank of England and the Financial Conduct Authority to establish the crypto asset task force.
In a statement, the UK Finance Minister, Phillip Hammond stated, "I am committed to helping the sector grow and flourish, and our ambitious sector strategy sets out how we will ensure the U.K. remains at the cutting edge of the digital revolution. As part of that, a new task force will help the U.K. to manage the risks around crypto assets, as well as harnessing the potential benefits of the underlying technology."
Automated solutions may be likely elements of the strategy that assist organisations in adhering to the standards set by the task force that may allow for quicker, cheaper, ways for both the task force and companies involved in the crypto space achieve effective communication of standards. A partner at Hogan Lovells expressed
“Having a joined-up approach across different parts of the government is a really welcome development. The treatment of crypto assets is currently complex and uncertain so having a common view across regulation, tax and currency will be a very positive step forward. It will be very important for the new task force to engage with the industry. There are many different models for crypto assets which throw up different legal and tax issues and which currently need to be dealt with on a bespoke basis. There is still a great deal of confusion as to how the existing regulations and tax rules apply to crypto assets and having a clear and common view is vitally important in the development of these new asset classes and for the ecosystem to develop to its potential.”
There are, however, opportunities for other countries to host the companies that may feel that their operations are being negatively impacted by overarching supervision of a crypto asset task force. European nations such as Lithuania are drawing away startups away from UK. Lithuania serves as an attractive alternative as it has one of the fastest internet networks, ease of establishing a business, and start-up visas.
Blockchain Centre Vilnius founder Antanas Guoga stated that “London already hosts the largest pool of Lithuanian talent working in IT, innovation, finance, and technology. As U.K. companies and entrepreneurs consider their next move in light of Brexit, Blockchain Centre Vilnius is offering a globally-networked blockchain hub and a friendly regulatory environment. It goes with the overall positive attitude of E.U. institutions, which are ready to embrace blockchain technology.”
The likes of JP Morgan and other financial institutions have made it clear that blockchain could become integral parts of the financial industry. Some organiations are likely to perceive blockchain and the use of crypto assets as quick ways to attain revenue, which will result in significant ramifications for organisations that are "playing by the books".
In its report, "Unlocking Economic Advantage with Blockchain" JP Morgan states that "Early engagement is essential for asset managers to drive prioritization of the right issues and use cases; competitive advantage can be gained from working with the right partners early on to develop real world solutions."
Early engagement by all groups and individuals affected by the tasks force will be important in ensuring that actions carried out by the task force and actions carried out by the organisations under the purview of the task force are in sync. The need to adequately measure the degree of utility of actions by these organisations must be considered from a quantitative perspective.
Posted from my blog with SteemPress : https://moonflowcrypto.com/index.php/2018/03/28/uks-crypto-asset-task-force/
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