Leading cryptocurrency companies in the UK have teamed up to launch a self-regulatory trade body – CryptoUK.
Founding members include BlockEx, CEX.IO, Coinbase, CoinShares, CommerceBlock, CryptoCompare, and eToro. Iqbal V Gandham, UK Managing Director of eToro, has been elected chair for the first year.
“We’re extremely proud to have brought together some of the leading players in the sector. 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,” Gandham said.
The primary objectives of CryptoUK include raising understanding of the cryptocurrency sector, improving industry standards, and engaging with policy makers on the future of the sector. It will also call on the government to introduce appropriate regulation to protect consumers and business certainty, allowing the sector to flourish in the country.
According to the official release, CryptoUK has developed an industry-leading Code of Conduct, the first in the UK, which members must comply with and is intended to improve standards in the industry. It said that the code will be evolved and updated following collaboration with industry, policy-makers and wider opinion formers over the coming months.
“The Code of Conduct is at the heart of everything we do. It is not finished. It will be improved and refined, in collaboration with industry, policy makers and others. We hope it can form the blueprint for what a future regulatory framework will look like,” Gandham added.
The measures included in the code include 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 communications 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.
