With the rapid expansion of cryptocurrencies around the world and as more and more governments contemplate regulating them, the UK has entered the fray. Speaking to MPs in the House of Commons on January 26, current West Suffolk Member of Parliament Matt Hancock supported the cause of UK policies on new innovations such as FinTech and cryptocurrencies.
According to Hancock, these new technologies have the ability to disrupt the financial sector and can be an "economic engine" for the post-Brexit UK, underlining the importance of getting new legislation adapted to them to avoid stifling innovation.
Hancock said that "these innovations have the potential to affect finance, just as social media has affected communication, or online shopping has changed retail." In particular, the UK wants to use these technologies not only so as not to be left behind financially, but also because the technology is transparent and will help in the fight against crime and fraud.
“The UK has a chance to be the home of FinTech, which can not only be an economic engine, but also help reduce fraud and financial crime thanks to the transparency it brings,” he said. It is worth mentioning that the UK has tightened its laws against cryptocurrency exchanges in recent months. Cryptocurrency exchanges will be forced to pay the 2% digital service tax following a new update to Her Majesty's Revenue and Customs (HMRC) regulations.