Syed Rahman warns against a rush to regulate cryptocurrency
The UK Treasury outlining its aim of regulating cryptocurrency led to Syed Rahman voicing concerns.
The Treasury intends to bring regulation of cryptoassets within the regulatory framework that was created by the Financial Services and Markets Act 2000. It believes that this will lead to greater confidence in crypto and increased credibility and regulatory clarity.
But Syed Rahman made it clear that any measures introduced as a rapid reaction to crypto-related scandals may do more harm than good.
He warned The Law Society Gazette that while regulation may promote growth in the long run, any “knee-jerk reaction’’ may have the opposite effect.
Syed added: “Trying to adopt a one-size-fits-all approach could damage the crypto sector. Anything that is introduced to hinder innovation in the sector will undoubtedly have a more harmful effect.’’
Consultation on the Treasury proposals will close on 30 April.
The full Law Society Gazette article can be viewed here.
