Syed Rahman considers the likely impact of the Financial Services and Markets Bill on cryptocurrency
Syed Rahman was asked by Law360 for his assessment of how the Financial Services and Markets Bill will affect cryptocurrency.
The Bill includes the regulation of stablecoin cryptocurrencies backed by a reference asset but not unbacked variants, such as bitcoin and ether.
Syed said that more regulation of unbacked cryptocurrencies may spur growth in the sector especially as some of the largest coins are in this category. But he stressed that this remains to be seen.
He added that the Bill’s intention appears to be enabling stablecoins to be used more easily to pay for everyday goods. This, he explained, may prove a huge incentive for individuals and corporates to invest in the UK’s crypto sector.
Critics have said the Bill’s absence of regulation of unbacked cryptocurrencies may prolong the risk of investors losing their money to those who use such assets as a vehicle for fraud.
Syed's article can be read on Law360. (Subscription required)
