UK: seven companies specialized in cryptocurrency form a body of self-regulation

UK: seven companies specialized in cryptocurrency form a body of self-regulation

After three European financial supervisors on Monday launched a warning about the risks of the cripto industry, the big players in the UK have announced the creation of a self-regulatory body to ensure the legitimacy of the activities associated with digital coins.

The association currently includes seven companies – Coinbase, eToro, CryptoCompare, CEX.IO, BlockEx, CoinShares and CommerceBlock – which are active in the field of exchange and are associated with the idea of creating a code of conduct to ensure them legitimacy in the eyes of the authorities.

CryptoUK Director (who also heads the eToro Exchange), Iqbal Gandham, said the purpose of this association is to “promote a code of good practice and work with government and regulatory authorities to support the implementation of a legislation adapted to this workflow “.

According to the information published on Crypto UK, the code of best practice is to prevent money laundering and other illegal activities based on bitcoin transactions and other cryptocurrency and to provide consumer protection.

But the association’s initiators said they did not intend to get involved in ICO regulation, which has attracted major criticism from all global financial authorities. Instead, they want to represent the following categories of actors on the cripto market:

  • exchanges – sites where you can buy and sell digital cryptomonets using alternative coins or fiat money
  • trading / brokerage platforms
  • sites that provide comparative analysis of crypto market prices
  • intermediaries – facilitating payments and digital transactions
  • sellers accepting payments in cryptocurrency
  • asset managers, which facilitate investment and crypto transactions.

The CryptoUK initiative is welcomed on the market, especially as financial authorities have repeatedly stressed that cripto industry players are responsible for the way they are seen by consumers. Self-regulation is the first step in the right direction, which will help cryptocurrency be treated as a partner and not as a financial risk that must be limited by restrictive laws.

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