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The UK regulators have begun to investigate the impact of digital assets on the country's economy with a view to regulating crypto data in a way that will benefit all stakeholders.

### Regulation that supports innovation
According to the Investment Week, the study will give the regulatory authorities an accurate idea of ​​the effect of virtual currencies and block technology on financial institutions as well as on other areas of the economy. The report will also review the government's regulatory stance and key bodies such as the Financial Behavior Authority and the Bank of England. Niki Morgan, a representative of the Finance Committee, said:

>"People are becoming more and more aware of crypto like Bitcoin, but maybe they do not know they are not regulated in the UK right now, and there is no legal defense for individual investors. Identifying the right balance between digital currencies to ensure adequate protection for consumers and businesses without stifling innovation is crucial. As part of the study, we will explore how we can achieve this. "

### Crypto is a two-edged sword
Alison McGovern, a member of the Treasury Committee, is of the opinion that the government needs more "enlightenment" with regard to crypto, as Bitcoin and other digital assets offer big profits to investors but also have a significantly high risk. McGovern also commented:

>"This query comes at the right time, as regulators and governments are struggling with the recent developments in the Crypto Market. New technologies offer potential profits to the economy, but, as it has been lately, it can also lead to significant losses. "

### The regulation is inevitable
While the representative of the Treasury and some members are on the same side regarding the fair regulation of the block ecosystem, some other employees see crypto as "madness" that should be removed as soon as possible. Law Firm Advisor, Lorraine Johnston, said that this study only "signals one more step to what appears to be inevitable for regulating crypto." Johnson added:

>"But again, the conflicting interests in support of innovation against consumer protection are being raised."

Meanwhile, BrokerNotes Chief Executive Markus Taylor is of the opinion that the virtual currency market is scattering:

>"The Crypto market is excited. We have to move in a direction that leads to an understanding of the different uses of the underlying technology and the possibility of crypto becoming an alternative to the fine currencies. The UK has a great opportunity to take advantage of block technology and take the road to building innovations that can help the British economy. This is inevitable, with or without government intervention. However, with the legal level of regulation, funding and government support can certainly make things happen faster. "

Fair regulation of the crypto market is a step in the right direction as attempts to stifle the growth of virtual currencies can be met with consumer resistance, just as happened in South Korea.

Bitcoin and the alternative currencies slowly but constantly become part of life, especially for the younger generations.

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