While supporters of blockchain technology argue that it should be regulated, Britain`s financial watchdog will not do it for now. As the blockchain
While supporters of blockchain technology argue that it should be regulated, Britain`s financial watchdog will not do it for now.
As the blockchain technology evolves, there are many regulatory and consumer issues that have to be discussed, as Christopher Woolard, director of strategy and competition at the Financial Conduct Authority (FCA) said.
“The FCA continues to monitor the development of this technology but is yet to take a stance until its application is clearer.”, as Woolard stated in a speech published several months ago.
Blockchain technology has been associated with a massive ledger of transactions that is verified and shared by the global network of computers, as the article pointed out.
“The current development of distributed ledger technology has the potential to revolutionise financial services; whether it is the panacea of all ills in the financial world is yet to be seen.”, as he added.
At the time, US start-up Digital Asset Holdings has received support from JP Morgan, Deutsche Boerse, Accenture and others to develop the use of blockchain in financial services like settling trades, among others.
From lawyers’ perspective, this will raise the need for new rules for banks and exchanges, so that regulators are sure that there is enough control to mitigate the risks to the financial system.
Woolard attended the financial technology (fintech) week events hosted by Britain`s finance ministry at the time of publication. He said that the FCA had just authorised CUVVA that provides car insurance, as reuters.com wrote in their article.