CryptoUK calls MPs to Regulate UK’s Cryptocurrency Industry

The aim of the CryptoUK is to self-regulate inside the crypto industry in UK

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CryptoUK created to self-regulate inside the crypto industry in UK addressed some Members of Parliament (MPs) to recommend cryptocurrency regulations beneficial for the nation, as reported by news outlet City A.M. on 1st May 2018.

The association wrote a proposal to the Treasury Select Committee’s inquiry into cryptocurrencies today. This inquiry plans to look into the role of cryptocurrencies in the United Kingdom. These include risks associated with usage by consumers, businesses and the government.

Regulators in many countries accuse digital currencies to be tools that support crimes. According to CryptoUK, the regulations should concentrate on brokers and trading platforms which are the real root of such problems, instead of cryptocurrencies.

As the association strongly believes HM Treasury should support the Financial Conduct Authority (FCA) on new permissions for maintaining crypto investments. Further, the association recommends FCA to have responsibility on licensing of crypto trading exchanges and putting forward new guidelines. Background checks on investors, operational standards and anti-money laundering techniques will fall into this category of new requirements. The chair of CryptoUK and UK managing director at eToro, Iqbal Gandham mentioned the following;

Introducing a requirement for the FCA to regulate the ‘on-off’ ramps between crypto and fiat currencies is well within the remit of HM Treasury. Based on our analysis, this could be achieved relatively easily, without the need for primary legislation, and would have a huge impact, both in reducing consumer risk and improving industry standards.

CryptoUK urges government for a proactive stance on crypto regulations

Gandham explained with scenarios of other nations where governing approach has yielded good results and showed the importance of having a proactive stance in the United Kingdom as well;

This is an approach which is already working well in other countries, who are now taking the lead over the UK, for example in Japan and Gibraltar. This is a wonderful opportunity for government to take a proactive stance, putting action where there are positive words and reinforcing the UK’s role as the world’s financial capital.

Earlier in February 2018, seven leading cryptocurrency firms worldwide joined together to form the CryptoUK. The aim of the unity was to self-regulate inside the crypto industry in UK. Coinbase, CEX.IO, BlockEx, CommerceBlock, eToro, CryptoCompare and CoinShares are the main trading services and platforms which created this association.

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