Letters: A light touch for crypto rules
[Re: Rishi Sunak sets out plan to turn UK into ‘global hub’ for crypto, April 4]
The UK government’s plan to regulate cryptocurrencies is a major step in the right direction towards unlocking the huge potential of digital assets while ensuring investors are protected – just like in any other financial market.
It is vital for the UK government to take a balanced approach to crypto. Heavy-handed regulation could stifle innovation and contradict the very decentralised, democratic premise on which cryptocurrencies were built. At the same time, crypto volatility and lack of stability means that everyday investors may not understand the risks involved and end up getting hurt.
The appropriate balance can only be reached by the public and private sectors working together. The UK government’s plan to step into this space and work collaboratively is a significant development in providing the industry with the legitimacy it needs to integrate into the existing financial system.