UK government launching new research into cryptocurrency risks

The UK government is looking more closely at the potential risks and rewards associated with cryptocurrencies such as Bitcoin, reports say.

John Glen, junior finance minister, said: “In our upcoming fintech strategy, the government will announce further work with the Financial Conduct Authority and the Bank of England to consider these issues in more detail. … The UK is the best place in the world for fintech and my mandate is to ensure it remains such.”

There is concern that the “explosion” of growth in the crypto space has not allowed for proper research into the risks, reports Reuters, and an investigation has also been launched by the Treasury Select Committee.

“We don’t want to be dragged into a race to the bottom. Effective regulation is good for the sector and we can learn from other jurisdictions,” said MP Nicky Morgan.