CryptoUK, a UK-based self-regulatory trade body focused on the cryptocurrency industry, is calling on the regulators and the government to regulate the cryptocurrency industry in the UK.
According to LeapRate, in its response to the House of Commons Treasury Select Committee inquiry into digital currencies, CryptoUK has set out new plans for the HM Treasury to make cryptocurrency investment a regulated activity under the Financial Conduct Authority (FCA).
Among other things, CryptoUK has proposed issuing of “crypto licenses” to the platforms which comply with know your customer (KYC) and anti-money laundering (AML) standards.
CryptoUK’s proposal calls for regulation on those platforms (exchanges, brokers and trading platforms) that facilitate exchange between digital currencies and fiat, not on the currencies themselves.
“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,” Iqbal Gandham, Chair of CryptoUK, said.
The UK Treasury announced the launch of the inquiry into digital currencies and distributed ledger technology (DLT) in February 2018. The deadline for written submissions is Monday 30 April 2018.
CryptoUK was formed earlier this year by a number of UK-based cryptocurrency companies, including BlockEx, CEX.IO, Coinbase, CoinShares, CommerceBlock, CryptoCompare, and eToro.
