BLOCKCHAIN SOLUTIONS
FINTECH WILL PLAY CRUCIAL ROLE IN SUPPORTING SAFE CRYPTO IN UK SAYS LANISTAR
The UK ’ s mission to become a ‘ crypto hub ’ has so far fallen short , but the appointment of Tulip Siddiq as Economic Secretary to the Treasury , or City Minister , signals a move toward a more progressive approach to crypto and digital currencies . The new City Minister has been an advocate for Blockchain technologies and crypto , so long as they are properly regulated . If the UK is to take steps to create a well-regulated and world-leading crypto industry , it should look to the successes of British FinTech .
With the decline of cash in the UK , innovative solutions developed by FinTechs have revolutionised the payments market . A joint report by UK Finance and Accenture revealed a surge in payments using Apple Pay and Google Pay due to their enhanced security and looser spending limits . The seamless , secure nature of digital wallets has led to a surge in popularity , opening the door to integration with other financial services , such as financial planning or cryptocurrencies .
Commenting on the potential of the UK crypto industry , Jeremy Baber , CEO of Lanistar , said : “ If the right regulation is put in place , the UK definitely has the ability to realise its potential as a global ‘ crypto hub ’. In the first months of her new role , the City Minister will need to assure the public that crypto can be a safe and secure alternative to fiat currency , so long as it is properly regulated . The Financial Conduct Authority ( FCA ) has already been proactive in this area , warning retail consumers that crypto assets are high risk and still largely unregulated . Regulation is therefore key and is where the UK ’ s potential to be a ‘ crypto hub ’ will be unlocked .
“ Striking the balance between secure regulation and shackling an industry is integral to the potential of the UK ’ s crypto hub dream . The UK government will be mindful of overstepping the mark when it comes to deterring overseas investment and innovation with too much red tape . On the flip side , security and earning the trust of sceptics will also be a consideration for regulation framework .
“ Consulting experts from both the crypto and FinTech space will dramatically improve the government ’ s understanding of proposed regulation and how it must look . Failing to include this much-needed lobby will provide much needed clarity and guidance on this time sensitive , complex task .
“ Once regulations are in place to make crypto a safer and more secure investment option for UK consumers , there will be a wave of new products and solutions available to the market . In a similar way to how the influence of FinTechs and neobanks have revolutionised payments in the UK , access to crypto will be seamlessly integrated into apps and platforms . Lanistar has already integrated crypto exchange functionality for its customers , allowing them to purchase Bitcoin and Ethereum using their accounts . FinTechs who act early to build integrations like these will be best placed to reap the rewards of the impending regulatory changes .”
Baber concluded : “ Although Brexit has had a negative impact on financial services and our relationship with the EU , there is now an opportunity to regain closer ties with our biggest and closest trading partners to recapture our position as a leader in FinTech and finance . The EU is pressing ahead with trading agreements focused on digital technologies , for example with Singapore . If we do not regain our relationship soon , we will fall further behind resulting in lost revenue for our government .” � www . intelligentfin . tech
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