With the findings of the FCA's review of cryptocurrencies imminent, we ask Ed Gouldstone, Head of Global Product Management for Asset Management at Linedata, what benefits will it bring and what does it mean for the UK investment industry?
With the world of crypto and digital currencies growing rapidly, the FCA is poised to determine how these assets should be regulated.
What does the FCA cryptocurrencies review mean for the investment industry?
"The FCA's review of cryptocurrencies provides an excellent opportunity to regulate a market that so far few UK fund managers have rushed to embrace." EG
"To date fund managers have been wary of the somewhat unfettered realm of crypto and are unsure if it should form part of their portfolios. However, the pressure is always on to find new sources of alpha and continue to deliver growth - this could be a great area in which to achieve this." EG
How will a more robust regulatory framework impact crypto growth?
- Cryptocurrencies could offer a very real alternative source of alpha for fund managers.
- A more robust regulatory structure will offer a first step into making the young and fragmented crypto infrastructure better able to support trade volumes.
- Countries such as Switzerland already recognise digital currencies as a large investible asset class - by supporting a framework for secure and governed crypto investing, the FCA keeps the UK at the forefront of the market and allows fund managers to stay innovative and capitalise on the many opportunities presented.