CryptoUK, a self-regulatory trade association of the cryptocurrency industry in the UK, addressed several members of Parliament (MP) to advocate for favorable regulations in the sector, the City A.M.
The association submitted its proposals in writing to the Treasury Committee’s investigation of today’s cryptocurrencies. The research aims to examine the role of digital currencies in the UK, including risks related to their use by consumers, businesses, and government.
While regulators around the world claim that cryptocurrencies are instruments for criminal activity, CryptoUK said that regulation should focus on brokers and trading platforms instead of digital currencies.
According to reports, the group believes that HM Treasury must provide the Financial Conduct Authority (FCA) with new permits to control investment in cryptocurrencies. Besides, CryptoUK proposed that the FCA be responsible for licensing approved exchanges and enforcing new requirements. This would include practices against money laundering, investor examination, and operational standards. Iqbal Gandham, president of CryptoUK and general manager of the United Kingdom at eToro, said:
“Introducing a requirement for the FCA to regulate the ‘on-off’ ramps between the cryptographic and fiduciary currencies is within the scope of HM Treasury.According to our analysis, this could be achieved relatively quickly, without the need for primary legislation, and would have a significant impact, both in reducing consumer risk and in improving industry standards. “
Gandham continued, presenting examples from other countries where the government approach has worked well and highlighting the importance of adopting a proactive stance in the United Kingdom:
“This is an approach that is already working well in other countries, which are now leading the United Kingdom, for example in Japan and Gibraltar.” This is a wonderful opportunity for the government to take a proactive stance, act when there are positive words and reinforce the role of the United Kingdom as the global financial capital “.
CryptoUK was formed in February this year when seven of the world’s largest cryptocurrency companies joined forces, aiming to self-regulate within the UK encryption industry. The association is formed by trading platforms and services such as Coinbase, eToro, CryptoCompare, CEX.IO, BlockEx, CoinShares and commerce block.