What a whirlwind fortnight it has been.
Not only did we have our UK press launch in the Tower of London, a mere stone’s throw from the Royal Mint, but we have also officially started trading LEOCoin on our LEOxChange!
In a packed ballroom of the Hyatt Hotel in Hong Kong more than a dozen journalists from across China joined us, not to mention over a thousand LEO members, all eager to find out more.
Coincidentally, our launch comes a matter of days after the UK Government announced its plans for regulating the digital currency sector.
Amidst all this activity, it felt like appropriate timing, to hear more about the Government’s planned direction of travel in this area. LEO took part in this consultation, including meeting personally with the Treasury on the issue, as we believe that careful regulation is critical.
To summarise, the Government’s key announcements are:
· an intention to apply anti-money laundering regulation to digital currency exchanges in the UK (which LEOCoin has already registered for), to support innovation and prevent criminal use. There will be formal consultation on the proposed regulatory approach early in the next Parliament.
· plans to work with the British Standards Institution (BSI) and the digital currency industry to develop voluntary standards for consumer protection.
· a new research initiative bringing together the Research Councils, Alan Turing Institute and Digital Catapult with industry in order to address the research opportunities and challenges for digital currency technology, as well as increase research funding in this area by £10 million to support this.
The Government has also announced that the Financial Conduct Authority’s ‘Project Innovate’ will work with HM Treasury and the Prudential Regulatory Authority to investigate the feasibility of developing a regulatory “sandbox” to allow financial services innovators to test ideas at an early stage without excessive regulation, but with the informed consent of consumers and proper risk management.
A ‘sandbox’ approach is certainly what’s required in these early days. While we support regulation, over-zealous intervention runs the risk of dissolving the core benefits of digital currencies: privacy, security, low to no fees and free marketability. In an extreme case, it could restrict legitimate business and create another black market.
The process is ongoing and we are continuing to actively engage; and now the currency is live we will be able to bring real world examples to the table!
No comments:
Post a Comment