Global regulation needed for crypto to reach its full potential – Lord Holmes
Representatives from the UK’s House of Lords, Binance and top lawyers are divided over the direction of crypto regulation.
At City PM’s crypto summit today Lord Holmes, who founded the first parliamentary group on FinTech in 2016, called on governments worldwide to collaborate on regulation. He warned that global agreement on crypto trading rules is needed to level the playing field for investors.
“We need to make sure every single citizen worldwide has the opportunity to benefit from crypto,” said Holmes, who claimed that plans to regulate digital assets are gaining momentum in the British parliament.
“In one sense we have never been more connected than we are now,” he added. “Its a good time to be collaborating and to be considering how we can grow.”
Binance on regulation
However, Lynn McConnell, Head of Compliance at Binance UK, was less convinced that a joined up, global approach to regulation can become a reality.
McConnell said a “patchwork quilt of regulators from around the world” better describes the direction of change.
“There will not be in my humble opinion any single global regulator,” she continued.
The comments come as Binance, the world’s largest crypto exchange by trade volume, faces a series of setbacks at the hands of worldwide financial watchdogs, including the UK’s FCA which said the company was operating without proper permissions.
Pushback
Other panelists criticised government involvement in digital asset ownership altogether.
“Regulation tends to be a political powder keg,” said Auditchain’s Jason Meyers, who accused governments of political grandstanding when it comes to crypto.
“Are they protecting the public? No,” Meyers continued, stressing that regulation lags far behind innovations in tech.
Forward look
Not so according to Holmes who said that parliament is making “strides” towards both greater understanding and regulation of crypto assets.
It comes after the Bank of England hinted that tough new regulation on crypto assets could be forthcoming.