Britain is getting a cryptocurrency task force
- The UK Treasury is hosting its second International Fintech conference in London on Thursday.
- The Chancellor is set to announce a new government task force to look at cryptocurrencies.
LONDON - UK Chancellor Philip Hammond will today announce a new task force looking at cryptocurrencies.
The Chancellor is delivering a major speech on fintech at the Treasury's second annual International Fintech Conference in London 0n Thursday.
Hammond will announce a new task force including representatives from the Treasury, the Bank of England, and Britain's financial watchdog the Financial Conduct Authority.
"A new task force will help the UK to manage the risks around Crypto assets, as well as harnessing the potential benefits of the underlying technology," Hammond will say.
The task force follows a similar inquiry set up by the Treasury Select Committee, a Parliamentary scrutiny group, in February.
The task force comes at a time of increased scrutiny of cryptocurrencies and calls to regulate the space. The G20 this week set a July deadline for recommended cryptocurrency regulation and the Securities and Exchange Commission (SEC) in the US has been cracking down crypto companies in the US.
Bank of England governor Mark Carney called for regulation of the space in a speech earlier this month and warned that the space has the "hallmarks" of a bubble. However, Carney has said that the blockchain tech underpinning cryptocurrencies could be transformational to mainstream finance.
As well as the crypto task force, Hammond is set to announce new measures including:
- "Robo regulation", whereby new startups will be allowed to write software that compels them to follow the law rather than submit to in-depth supervision from day one.
- A new UK-Australia "fintech bridge" to help UK firms expand internationally.
The UK fintech sector contributes £6.6 billion annually to the UK economy and employs over 60,000 people across 1,600 companies, according to the Treasury.