The UK has never really been crypto-friendly. In the past, their prime minister, Theresa May, said that crypto needed additional regulation. While this is idiotic, they aren’t the only government attempting to get involved with regulating this industry, so it wasn’t a huge deal. The UK treasury department, however, has now stepped up and said that they are working on an inquiry into cryptocurrency in general, and the blockchain technology that it runs on.
This, of course, could have some very negative impacts. They are obviously going to find that crypto is very volatile and risky. In addition, they will undoubtedly point out that crypto can easily be used by parties with illegal intent. These are all things that the average crypto investor already knows, but can be painted in a very negative light by the government and the media.
The one potential positive point of all this is that if they actually do a good job when it comes to investigating the blockchain, they may be forced to concede that it is truly a revolutionary technology. Of course, they could just gloss over that bit of information if they decide to focus on the negative.
While the UK is an important player in the crypto-market, they have never been the largest or most influential, which is good. Keeping an eye on what happens with this ‘inquiry’ is going to be something anyone interested in the crypto markets will have to do to determine what, if any, impact it will have on the prices of coins.