Seven cryptocurrency companies have formed a UK cryptocurrency trade body, bringing the first self-regulation to the industry.
With the sector growing in popularity and calls on the government to introduce appropriate regulation to protect consumers and business certainty, CryptoUK will look to promote the development and recognition of digital currency technologies in the UK.
The trade association said it will educate politicians and regulators about the industry, whilst also working with them to develop an appropriate operating framework for the UK.
“Our members, comprising of leading companies from across the sector, believe that cryptocurrencies can help enhance the way we undertake financial transactions, to the benefit of consumers, business and security,” CryptoUK said on its website.
“We believe that by working together we can ensure that the UK fulfils its potential to be a global leader in this exciting new industry.” To promote industry best practice, CryptoUK has developed an industry-leading Code of Conduct, the first in the UK, which members must comply with and is intended to improve standards in the industry.
The Code, which will evolve and be updated following collaboration with industry, policy-makers and wider opinion formers over the coming months, includes checks to ensure that investors are fit and proper to undertake transactions, due diligence checks on platform users to protect against illegal activity, and will segregate fiat customer from company funds to ensure customer funds are payable upon an insolvency event.
In line with anti-money laundering regulations, the members said they are committed to undertaking due diligence checks on platform users to protect against illegal activity, including the financing of terrorism. They are also committed to ensuring the proactive management of IT infrastructure to prevent leakage, loss and damage of personal information, in accordance with data protection regulations.
CryptoUK comprises seven founding members including trading platforms, exchanges, comparison sites, intermediaries, merchants and asset managers.
These are: BlockEx; CEX.IO; Coinbase; CoinShares; CommerceBlock; CryptoCompare; and eToro. Iqbal V Gandham, UK managing director of eToro, has been elected chair for the first year.
For the time being, the association said it will not be representing initial coin offerings (ICOs), but a working group is considering this issue and the potential for a specific self-regulatory framework.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
