The former chancellor Philip Hammond claimed that the trading of digital assets in particular lacked a regulatory framework.
Hammond noted that the nation has historically been quite nimble in embracing new technology, this hasn’t been as evident as it is now when it comes to regulating cryptocurrencies. It reminds me of the wild west. He added that this is probably because of a combination of a “bandwidth issue” and a capacity issue. The issue is that there are no rules and everyone is unsure of their position. It has, quite honestly, developed a mixed reputation, especially among the public and legislators.
Concerns about the UK falling behind its European Union rivals in the regulation of cryptocurrencies have been expressed by a former Chancellor of the United Kingdom. From 2016 to 2019, the United Kingdom’s Chancellor of the Exchequer, Philip Hammond, told Bloomberg that there has been a glaring lack of coherence and direction in crypto policy.
“I believe that the UK has missed a trick, particularly in the field of trading digital assets. It may already be too late at this time.” We are being outpaced by other jurisdictions.
He also emphasized the importance of building a digital trading infrastructure to make the UK a centre for trading tokenized traditional assets like tokenized bonds and shares.
The nations who have adopted this technology and have efficiently regulated it will be the ones to create these markets and turn into the new hubs. For those who want to participate in the digitalization of traditional financial assets, doing this right and getting the rules surrounding digital trading right will be crucial.
Despite the U.K. government’s assurances that it would draught legislation to control the cryptocurrency industry in May, the former minister’s critiques nevertheless surfaced. This is a pretty recent development in technology. For public sector organizations with public sector pay structures, it is exceedingly challenging to hire the finest and the brightest people for these positions.
“In my opinion, the [Financial Conduct Authority] FCA should have approached the sector and announced the necessity for secondees. You see, we are unable to employ the necessary personnel. The industry is necessary to give us the talent we need to develop the regimes we must implement.
In defence of the regulators, Hammond claimed that they had been under extreme stress as a result of coping with the effects of Brexit, COVID-19, and its impact on their own working arrangements.
Hammond is no stranger to the cryptocurrency field; since October 2011, he has worked as a senior advisor for copper.co, a start-up company based in London that offers custodial and infrastructure services for the digital asset market.