The Treasury Committee of the U.K. Parliament is planning to spearhead an investigation into cryptocurrencies, namely, to examine how virtual currencies like bitcoin affect British investors and businesses.
This is amid the growing popularity and value of cryptocurrencies, their future has remained unclear.
It can be remembered that from our previous report that some countries have adapted by fiercely cracking down on cryptocurrency exchanges, ICOs, and other elements of the new industry.
Other governments are more cautious in their approach. Still, for a global industry that is known for its extreme volatility, even the slightest inkling that a country may be looking to step in with additional regulation can send markets tumbling.
According to report from Coin Telegraph, the inquiry was announced on February 22 it will explore the ways in which cryptocurrencies impact U.K. consumers, investors and businesses.
The Treasury Committee cited the media hype surrounding virtual currencies and their erratic price movements for the probe.
According to the chairman of the Treasury Committee Nicky Morgan, the inquiry “will look at the potential risks that digital currencies could generate for consumers, businesses, and governments, including those relating to volatility, money laundering, and cyber-crime. We will also examine the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace traditional means of payment.”
As of the moment, cryptocurrencies are largely unregulated in the U.K.