Seven UK Crypto Exchange companies Forms First Self Regulatory Agency
Seven major crypto exchange companies operating in the UK, BlockEx, CEX.IO, Coinbase, CoinShares, CommerceBlock, CryptoCompare, and eToro have come together to form a first of its kind self-regulatory UK trade body for the cryptocurrency industry called CryptoUK.
The companies have announced the creation of an independent cryptocurrency agency. The group, Crypto UK, has stated that its main objective is "to improve industry standards and involve decision makers".
The companies said they hoped that the settlements would be the first part of the extended UK rules for volatile cryptocurrency transactions.
Last year's rise in bitcoin made it a popular phenomenon, rising to $ 20,000 (£ 14,400) in December, before falling below $ 7,000 last week. While Bitcoin has made some millionaires, it has left many amateur investors out of pocket while others have fallen victimof cryptocurrency scams.
Iqbal Gandham, president and CEO of Crypto UK, described the trading company's mission as "promoting best practices and working with government and regulators," highlighting its hope that the group could "develop the framework for a future regulatory model".
The self-regulatory group is also seeking support from the government and official regulators such as the Financial Conduct Authority. The Ministry of Finance is currently working on amending the international money laundering regulations for bitcoin and cryptocurrencies with an expected update in the coming months.
Members are expected to abide by a code of conduct According to CryptoUK. It provides for greater care against illegal activity and ensures that customer funds can be repaid in the event of bankruptcy, as well as guarantees against piracy claims.
Crypto UK said it is trying to "increase the sector's understanding at a time of strong growth in popularity," emphasizing the need to put pressure on the government "to introduce adequate consumer protection and business security regulations while the sector flourish in the UK."
Both the UK government and EU regulators have recently issued threats against cryptocurrencies. The EU warns that investors could be exposed to a Bitcoin bubble.
Mr. Gandham described the cryptocurrency industry as "poorly understood" by the dominant institutions.
"That's why Crypto UK was founded," said Gandham, "to promote best practices and work with government and regulators to ensure that Britain enjoys the exciting potential of this international technology."