The first self-regulatory trade organization based in the UK is ready to start negotiations on the possible crypto regulation, according to City A.M.
The association convened an official meeting with several Members of the Parliament (MPs) in order to present the sketch of the regulation to the Treasury Select Committee regarding the continued use of cryptocurrencies. The analysis involves shifting the importance of digital coins in the UK and the risks it can create.
We all know that cryptocurrencies have become a topic of discussion in several countries because of fraud involving this industry. On the other hand, CryptoUK seems to have a positive opinion, specifying in the documentation that the country should use crypto assets, especially by investing in trading platforms, rather than the individual transactions.
The CryptoUK Association has proposed to give the role of offering licenses to the crypto trading platforms to the Financial Conduct Authority (FCA). In this way, the association hopes to reduce the number of money laundering and fraud incidents.
“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,” stated the Chair of CryptoUK Iqbal Gandham.
He continued by exemplifying the countries where such regulation worked, adding that:
“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 the 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.”
As previously reported by Coindoo, CryptoUK is the world’s first self-regulating organization, that consists of Coinbase, eToro, CryptoCompare, CEX.IO, BlockEx, CoinShares and CommerceBlock. Launched on 13th February 2018, it aims to support and regulate the UK crypto activities.