The United Kingdom’s City Minister, John Glen MP, said at the Treasury’s International Fintech conference held on Thursday that the local cryptocurrency industry will flourish under “proportionate” regulations.
According to Business Insider, Glen, in his comment, claimed the government is still “engaged in trying to find the right narrative and the right level of regulation if that’s appropriate.”
John Glen MP proceeded, saying: “Regulation could be an enabler of a stable, flourishing cryptocurrency exchange in the City of London.”
The minister notably admitted that the current level of cryptocurrency trading and similar ventures is “not posing any significant risk to the UK economy.”
United Kingdom cryptocurrency exchange Coinfloor declared earlier this month that it would start allowing bitcoin futures contracts beginning from April. Although London is swarming with startups and blockchain projects, so far the most common exchanges work out of the United States or Asia.
The largest exchanges in the world conduct transactions worth hundreds of millions of dollars every day and digital assets startups have amassed billions. Some jurisdictions like Switzerland and Gibraltar have taken an accommodative strategy to regulation in a move to get a slice of the booming industry. Others, such as the United States and China, have attempted to rein in the market, which has been plagued by hacks and scams.
Glen emphasized the significance of taking calculated steps before trying to promote local innovation with extra-legal precision, stating: “I think it’s right that we take appropriate — not cautious, but proportionate — steps to assess it before we act as a government.”