UK crypto companies launch regulatory body
Written by Chris Lemmon
A number of UK cryptocurrency companies have created a self-regulatory trade body – CryptoUK – to improve industry standards and engage with policy makers.
CryptoUK will work to raise understanding of the sector and call on the government to introduce appropriate regulation to protect consumers and businesses. The new body has developed a code of conduct, which members must comply with and is intended to improve industry standards.
The code includes:
• Appropriateness checks to ensure that investors are fit and proper to undertake transactions;
• Due diligence checks on platform users to protect against illegal activity;
• Segregating fiat customer from company funds, and to ensuring customer funds are payable upon an insolvency event;
• Ensuring communication with customers is fair, clear and not misleading;
• Proactive disclosure of clear information on pricing, leverage and fees and any associated risks;
• A requirement on the use of “cold” wallets where appropriate.
CryptoUK is made up of seven founding members, including BlockEx, CEX.IO, Coinbase, CoinShares, CommerceBlock, CrpytoCompare, and eToro.
Iqbal Gandham, managing director of eToro and chair of CryptoUK, commented: “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,” he continued. “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.”