This initiative from UK crypto companies could set a standard for a global approach to regulating cryptocurrency.
At a time when numerous governments and organisations across the world are calling for cryptocurrency regulation, crypto companies in the UK have stepped forward.
Coinbase, BlockEx, CoinShares, CEX.IO, eToro, CryptoCompare and CommerceBlock have banded together to create a regulatory body to represent the whole sector.
The group is set to apply a code of conduct for the improvement of operating standards and consumer protection, while also collaborating with the UK government, industry and policy-makers for a full spectrum approach to the issue.
Rules within the new code will include monitoring the fitness of investors for the undertaking of transactions, due diligence checks on platform users and ensuring that customers funds will be payable in the event of insolvency.
Iqbal V Gandham, Chair of CryptoUK, said: “We’ve seen enormous growth of cryptocurrencies in the UK and recognition of both the benefits and the opportunities to make the UK a global leader. We’re extremely proud to have brought together some of the leading players in the sector. This Association is not only about exchanges, we represent the whole crypto sector, apart from ICOs. All of us are unified by a desire to grow in the UK and for the need for collaboration with government on what our future operating environment looks like.”
By taking the approach of incorporating government and industry advice and support, the group intends to set a global precedent for cryptocurrency regulation, a step thought essential by many to the future of digital currency.
“This is a severely misunderstood sector that has great potential to improve our society. But we are hearing instances of rogue operators and consumer harm. That’s why CryptoUK has been established: to promote best practice and to work with government and regulators to ensure that the UK benefits from the exciting potential of this international technology,” Gandham said.
Recently the Prime Minister of the UK called for greater controls to be put in place over cryptocurrency and its use, coming shortly before the announcement of this step in the right direction.
In conclusion, Mr Gandham said: “The Code of Conduct is at the heart of everything we do. It is not finished. It will be improved and refined, in collaboration with industry, policy makers and others. We hope it can form the blueprint for what a future regulatory framework will look like”.