Ex-Chancellor advocates that UK take “accepted risk” on crypto

According to Philip Hammond, the ex-Chancellor of the Exchequer, the UK is in danger of falling behind other countries in its bid to become a global hub for crypto.

In an interview for the UK-based Financial Times, Philip Hammond warned that the UK is falling behind in its bid to become a financial centre for digital assets, and said that other countries were “racing ahead”.

“The UK needs to be leading in this area post-Brexit,” he told the Financial Times, “It’s allowed itself to slip behind,” he added. “Switzerland is further ahead. The EU is also moving faster. There has to be appetite to take some measured risk.”

The ex-Chancellor voiced his frustration (and not for the first time) at what he perceived as the slow speed that the UK was moving, and that it needed to come up with a regulatory framework that could compete with other countries and allow the UK to lead the digital asset sector.

The Treasury is looking into a reform of regulations for the cryptocurrency industry, which it hopes will encourage and attract businesses to the UK that wish to “invest and innovate”.

Hammond was speaking with the Financial Times after taking on his new role as chairman of crypto exchange Copper. He revealed that the exchange had closed a new funding round, which was expected to lead to a valuation of $2 billion.

Hammond’s company Copper was forced to register in Switzerland last year when it withdrew its application in the UK. He blamed the move on the FCA’s temporary registration which could have led to Copper losing customers.

However, despite this, and also the huge bear market that crypto has endured for more than a year, Hammond said that Copper had managed to attract new customers and that there was a “tremendous surge in interest” in Copper. He added:

“We have managed to grow in a market that has shrunk 70 per cent,”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.