When It Comes To Banking, Are We Too Concerned About Regulation?

We are told that we need banking regulation, as it protects both our money and our confidence with banks to hold it securely. But with questions over blockchain and cryptocurrency, why is it so important that licenses are held these days?In times of previous financial crisis, a run on the banks can quickly topple an economy. But with additional financial stipulations such as the deposit guarantee scheme (where up to £85,000 of deposits are protected) and the requirement for banks to hold cash in the case of unexpected withdrawals, regulation is there to make sure that people are assured that their money is protected.With multitudes of ways to spend money and open credit, from a high-street bank to your gym, there needs to be some sort of regulation to ensure that each lender plays by the rules, and in the U.K. this is overseen by the Financial Conduct Authority (FCA). It is an organization that is growing rapidly and has the appetite to grow further. At the end of 2018, the FCA confirmed it was investigating 18 businesses involved in the sale of cryptocurrencies such as bitcoin. The regulator has also issued alerts and warnings about dozens of companies suspected of cryptocurrency investment scams. Currently, the transfer, purchase, and sale of cryptocurrencies are not regulated in the UK. However, companies that sell regulated investments with an underlying cryptocurrency element, may need FCA authorization to do so depending on their activities. As of November 12, the FCA had opened inquiries into 67 companies involved in the cryptocurrency business, according to the Sunday Telegraph, which obtained the details from the regulator through a Freedom Of Information request.