Be careful what you wish for. The reason there's a UK Digital Currency Association and the likely reason the Bitcoin foundation talked about opening a UK office (don't know if they did it?) is because London is the global centre of financial industry self-interest, counter-consumer financial practice and lobbying-centralisation union. Normally the way it works is someone comes up with a good idea. Others agree and form similar enterprises. They then get together and lobby for better 'consumer-protection', promoting innovation and official recognition.
Whereas what they're actually doing is getting the government to regulate away their competition by raising the barriers to entry for new entrants (e.g. p2p lending). Said it before but I'd guess if cryptos really take off, the UK will become a transaction centre but the costs and regulations will be so onerous that only players who can afford to play will be the same ones who already control non-crypto financial dealings.
Topic: UK Financial Regulator’s New Initiative Encourages Bitcoin Innovation (Read 1121 times)
June 03, 2014, 05:37:18 PM
If the article is accurate it seems like Great Britain may actually try to foster bit coin business. This would be great. I suspect though that there is also a back door idea to regulate it heavily as well.
bitcoin an asset cant be regulated by financial regulators.. dont you understand.. financial ill say it again FINANCIAL regulators only regulate FINANCE. bitcoin in an asset.. not money.. thus it wont be FCA regulating bitcoin. FCA will only touch businesses using pound coins.
businesses (dont worry individuals im not talking about you) ... BUSINESSES will be overseen by Office of Fair Trading, Trading Standards, ombudsman, etc in regards to bitcoins, much like how pawn shops selling gold have to adhere to common business practices
EDIT:
i now see what people are obsessed about.. exchanges. so let me clarify. out of lets say 30,000 + UK bitcoin businesses in the future there would only be maybe 5-10 poundcoin touching exchanges. in those poundcoin touching bitcoin exchanges yes FCA will be involved. but that leaves 29,990ish businesses that dont need to worry about FCA.
June 03, 2014, 05:14:20 PM
If the article is accurate it seems like Great Britain may actually try to foster bit coin business. This would be great. I suspect though that there is also a back door idea to regulate it heavily as well.
June 03, 2014, 01:39:17 PM
Would be nice if Britain took the lead in financial innovation, but I'll remain cautious and not get my hopes up. The banking sector has a huge presence in London and I'm sure they won't be too eager for lots of Bitcoin businesses to start popping up around them. Fingers crossed, though. It'll definitely benefit the economy if we're at the forefront of supporting this technology and other places are left to play catch up.
Britain will probably not lead in financial innovation as only london has a huge presence and no other country in the uk has a lot of banking involvement.
The FCA can only control businesses that use the pound coin side. they do not have jurisdiction over the bitcoin side, so FCA rules wont change unless they losen the red tape of the pound coin side of business.
as for banks, that is the major hurdle that needs to be fixed. and 'baitty': london is not a huge financial presence as you think. bank of scotland owns lloyds, halifax and lots of subsidiaries. ireland owns alot of banks (which facebook and apple love). so its not just about the london financial centre, it truly is about the UK financial centre.
bitcoin itself does not need regulatory approval. all that is needed is to reduce red tape to inspire businesses to grow. and also not regulation but business ethics in regards to sales of goods act and and OFT (office of fair trading) need to be reviewed to also help businesses run ethically without strangling them.
June 03, 2014, 01:29:10 PM
Edinburgh is heaving with finance.
June 03, 2014, 01:10:20 PM
Would be nice if Britain took the lead in financial innovation, but I'll remain cautious and not get my hopes up. The banking sector has a huge presence in London and I'm sure they won't be too eager for lots of Bitcoin businesses to start popping up around them. Fingers crossed, though. It'll definitely benefit the economy if we're at the forefront of supporting this technology and other places are left to play catch up.
Britain will probably not lead in financial innovation as only london has a huge presence and no other country in the uk has a lot of banking involvement.
June 03, 2014, 01:07:35 PM
Would be nice if Britain took the lead in financial innovation, but I'll remain cautious and not get my hopes up. The banking sector has a huge presence in London and I'm sure they won't be too eager for lots of Bitcoin businesses to start popping up around them. Fingers crossed, though. It'll definitely benefit the economy if we're at the forefront of supporting this technology and other places are left to play catch up.
June 03, 2014, 11:18:00 AM
LINK: http://www.coindesk.com/uk-financial-conduct-authority-fca-launches-bitcoin-initiative/
The Financial Conduct Authority (FCA) has announced a new initiative that could help bitcoin businesses in the UK. The move could mark a shift in approach for the regulator, which has steered clear of digital currency until now.
The FCA’s hands-off approach has not had a negative effect on the UK’s bitcoin companies, however. The nation remains one of the most attractive jurisdictions for bitcoin businesses, with the continent’s biggest financial hub at its heart.
Project Innovate is launched
The new fast-track initiative, Project Innovate, was announced by FCA Chief Executive Martin Wheatley in London last week.
The authority now says it wants to ensure “positive developments” like bitcoin are supported by the nation’s regulatory environment.
Project Innovate is designed to promote innovation in the financial sector and the FCA wants to create room for “the brightest and most innovative” companies to enter the space.
Wheatley reflected on a number of questions relevant to digital currency businesses, namely innovation and novel business models. He also recognised that some developments managed to transform finance in “improbable timescales”. These developments include crowdfunding, digital currencies and peer-to-peer technologies.
COINsult‘s regulation, compliance and risk consultant Sian Jones believes the FCA’s initiative could provide digital currency businesses with much-needed regulatory certainty and crystallise the UK’s status as the go-to digital currency jurisdiction.
However, Jones points out that it remains to be seen if and when the FCA plans to announce its official position on digital currencies, or whether or not Project Innovate results in “light touch” regulation or no regulation at all.
“Then, if Britain’s banks would only open their doors to Bitcoin businesses or a Fidor-like challenger bank were to emerge in the UK, that really would be something.”
UKDCA and UK’s stance on bitcoin regulation
Jones is also a founding member of the UK Digital Currency Association (UKDCA), which launched last March.
The Association has consulted Her Majesty’s Revenue and Customs (HRMC) on bitcoin-related issues and it has hosted a number of events in an effort to raise awareness and discuss regulatory issues. The UKDCA board includes Bullion Bitcoin owner Adam Cleary, Elliptic co-founder Tom Robinson and BankToTheFuture.com co-founder Simon Dixon.
The UK’s position on digital currencies is relatively ambiguous, but this has not stopped multiple bitcoin operators from incorporating in the UK.
Technology lawyer Eitan Jankelewitz has explained how UK regulation applies to digital currencies and what makes the nation so attractive for bitcoin businesses. However, he also concluded that the lack of regulation has caused more problems than opportunities for bitcoin businesses.
In late October the British Government launched a programme to support so-called Challenger Businesses (ie businesses based on new technologies) with vigorous models and innovative products.
Following meetings with members of the FinTech community, the Challenger Business team published a set of conclusions, identifying the same disruptive and innovative trends mentioned by FCA’s Martin Wheatley.
These included peer-to-peer loans, crowdfunding, digital currencies, as well as new payment schemes and anti-money laundering (AML) regulations.
AND FINALLY:
The Financial Conduct Authority (FCA) has announced a new initiative that could help bitcoin businesses in the UK. The move could mark a shift in approach for the regulator, which has steered clear of digital currency until now.
The FCA’s hands-off approach has not had a negative effect on the UK’s bitcoin companies, however. The nation remains one of the most attractive jurisdictions for bitcoin businesses, with the continent’s biggest financial hub at its heart.
Project Innovate is launched
The new fast-track initiative, Project Innovate, was announced by FCA Chief Executive Martin Wheatley in London last week.
The authority now says it wants to ensure “positive developments” like bitcoin are supported by the nation’s regulatory environment.
Project Innovate is designed to promote innovation in the financial sector and the FCA wants to create room for “the brightest and most innovative” companies to enter the space.
Wheatley reflected on a number of questions relevant to digital currency businesses, namely innovation and novel business models. He also recognised that some developments managed to transform finance in “improbable timescales”. These developments include crowdfunding, digital currencies and peer-to-peer technologies.
COINsult‘s regulation, compliance and risk consultant Sian Jones believes the FCA’s initiative could provide digital currency businesses with much-needed regulatory certainty and crystallise the UK’s status as the go-to digital currency jurisdiction.
However, Jones points out that it remains to be seen if and when the FCA plans to announce its official position on digital currencies, or whether or not Project Innovate results in “light touch” regulation or no regulation at all.
“Then, if Britain’s banks would only open their doors to Bitcoin businesses or a Fidor-like challenger bank were to emerge in the UK, that really would be something.”
UKDCA and UK’s stance on bitcoin regulation
Jones is also a founding member of the UK Digital Currency Association (UKDCA), which launched last March.
The Association has consulted Her Majesty’s Revenue and Customs (HRMC) on bitcoin-related issues and it has hosted a number of events in an effort to raise awareness and discuss regulatory issues. The UKDCA board includes Bullion Bitcoin owner Adam Cleary, Elliptic co-founder Tom Robinson and BankToTheFuture.com co-founder Simon Dixon.
The UK’s position on digital currencies is relatively ambiguous, but this has not stopped multiple bitcoin operators from incorporating in the UK.
Technology lawyer Eitan Jankelewitz has explained how UK regulation applies to digital currencies and what makes the nation so attractive for bitcoin businesses. However, he also concluded that the lack of regulation has caused more problems than opportunities for bitcoin businesses.
In late October the British Government launched a programme to support so-called Challenger Businesses (ie businesses based on new technologies) with vigorous models and innovative products.
Following meetings with members of the FinTech community, the Challenger Business team published a set of conclusions, identifying the same disruptive and innovative trends mentioned by FCA’s Martin Wheatley.
These included peer-to-peer loans, crowdfunding, digital currencies, as well as new payment schemes and anti-money laundering (AML) regulations.
AND FINALLY:
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