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The UK Government Looks to Establish Wide Standards for Fintech Firms

Amidst different opinion on cryptocurrency future, the United Kingdom’s government is aiming to establish wide standards for the financial industry. The establishment thinks that it would make it easy for any fintech enterprises to align with the banks. As part of it, the government has launched a task force that is meant to study the risks and benefits of the digital currency instruments.

The finance department has stated that Bank of England is also part of the task force. The central bank would also act as the Financial Conduct Authority watchdog, according to CNBC.

Great Britain’s move comes in the wake of Westminster laying out a wider fintech or financial technology strategy for the country. One of the initiatives of this would be signing a deal with Australia on Thursday, which was termed as “Fintech Bridge.” The government thinks that it would allow its domestic fintench companies to market their products, as well as, services in Australia. Aside from that, the United Kingdom thinks that the agreement would establish cooperation on policies, as well as, regulation in respect of the sector.

In a statement, the finance minister of the country, Phil Hammond, revealed that he was committed to helping the fintech sector to grow and flourish. He pointed out the ambitious tactics towards the sector and how the country would gain by being ahead and remain at the cutting edge as the revolution takes place in the digital world at a rapid pace.

As part of the efforts to grow the sector, the task force would help the government on managing the risks in respect of the virtual currency assets. The objective is to exploit the immense potential gains of the underlying technology in the upcoming years.

The Treasury has reportedly indicated that both the UK and Australia would involve in summits at regular intervals advising both the countries’ governments. Australia’s fintech industry bodies included Fintech Australia and Innovate Finance that are involved in the process.

Excellent Opportunity

Meanwhile, Innovate Finance chief executive, Charlotte Croswell, believes that the planned fintech bridge provided an excellent opportunity for both the nations to contribute to each other the knowledge gained from the industry. The comments assume significance as Britain’s finance minister is planning to talk about the tactics at a conference in London that was organized by the Treasury.

The digital currencies have become a big topic for worldwide policy makers in the recent past. This was due to significant growth in the issuance of the virtual currencies and the attention it was able to gain due to the stock markets trading at near lifetime high levels throughout the globe. This was quite evident when bitcoin, the best-known digital currency, hit a high of $20,000 in 2017 before plunging more than half.

Significantly, the latest move of the United Kingdom comes in the wake of Mark Carney, Bank of England Governor, calling upon for more regulation last month. He also warned that bitcoin has failed as a sort of money.

About the author

Eleni Steinman

Eleni worked as a business consultant in Yale. She believes that new technologies have tremendous impact on everyone’s life and poses big opportunities for businesses. She got into cryptocurrencies soon after Ethereum showcased various applications of blockchain.

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