CryptoUK Association urged members of the British Parliament to regulate the cryptocurrency sector

CryptoUK Association urged members of the British Parliament to regulate the cryptocurrency sector

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The British self-regulatory crypto-trading association CryptoUK appealed to members of the British Parliament with a request to establish favorable for the crypto-industry laws.

The Association described its proposals in a written response to the request of the special committee of the Treasury on the current state of affairs in the cryptocurrency sector. The request was filed to examine the role of digital currencies in the UK, including the risks associated with the use of digital assets by consumers, business and government.

Although regulators around the world continue to claim that cryptocurrency is a tool for criminal activity, CryptoUK believes that regulation should focus on brokers and trading platforms, rather than on virtual currencies themselves.

In addition, the association claims that the Treasury must provide the UK Financial Conduct Authority (FCA) with new powers to manage crypto-investment. CryptoUK believes that FCA should take responsibility for licensing exchanges and ensuring compliance with new requirements, including measures to combat money laundering, investor assessment and operational standards.

“The introduction of FCA’s responsibility for regulating the exchange between Crypto and Fiat is within the purview of the UK Treasury. Judging by our analysis, this can be achieved relatively easily, without the need to use legislation directly, and this will have a huge impact on reducing the risk to consumers, as well as improving industry standards,” said Iqbal Gandham, head of CryptoUK and managing director of the British eToro unit.

Further, Gandham cited examples from other countries where the government approach worked, and briefly described the importance of the UK taking an active position on this issue:

“This approach already works well in other countries that have outstripped Great Britain – in Gibraltar and Japan. This is an excellent opportunity for the government to take an active position, taking up business in a promising area of ​​the economy and strengthening the role of Great Britain as a world financial capital. “

The CryptoUK Association was founded in February, when seven major crypto companies joined forces to self-regulate the UK crypto industry. The association includes such trading platforms and services as Coinbase, eToro, CryptoCompare, CEX.IO, BlockEx, CoinShares and CommerceBlock.

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