Here are six things the UK government can do to protect consumers while not stifling innovation:
1. Clear up the tax situation
Blockchains don’t work without a token, and tokens need to be traded in and out of fiat (government backed currencies like the US dollar). This means there will always be a chance to profit (in fiat terms), so HMRC needs to clarify its stance....
2. Regulate exchanges
Almost all foreign exchange flows through banks or currency houses: what you do with it afterwards is your choice. It should be no different in the crypto-verse....
3. Create a framework for ICOs
You’ve done your homework and read our guide: “Should You Launch An ICO?” But chances are you still can’t discern if an ICO is legitimate or not. If you’ve even taken one look at a whitepaper, chances are you’ve given up on the first paragraph....
4. Let exchanges manage ICOs
This has two benefits: it’s a new business model for the exchanges and a central point of control for reducing illicit activity. Exchanges are staking their reputation on the projects so they’ll be incentivised to do their due diligence...
5. Establish a working group of blockchain experts, economists and policy wonks
Ever heard someone say, “Blockchain is good, but Bitcoin not so good”? That’s a fallacy and shows they don’t understand it. This is a new field and you can only take the correct actions if you actually understand the topic. It’s okay, we don’t even fully get it either...
6. Don’t innovate yourself
Naval Ravikant, CEO and Founder of AngelList and CoinList, believes there are only a few hundred engineers in the world qualified to write next generation internet protocols such as blockchains. Ditto for investing...."
