CryptoUK Established To Improve Crypto Industry Standards
Seven prominent UK-based cryptocurrency companies have come together to begin formulating self-regulatory standards through CryptoUK, an official trade association. Founding members of CryptoUK include Blockex, CEX.io, Coinbase, Coinshares, Commerceblock, CryptoCompare, and eToro. The stated main objective of this diverse trade body is “to improve industry standards and engage policymakers”.
Iqbal V Gandham, Managing Director of eToro social trading company, explained that the organization’s goal will be to work cooperatively with governmental agencies and regulators “to promote best practice”. Ideally, Mr. Gandham would like this self-governing trade body to propose a practical roadmap and blueprint that will help the crypto-community develop a comprehensive regulatory framework. Meanwhile, Zeeshan Feroz, CEO (UK) Coinbase, remarked that CryptoUK intends to open up the communication channels between the crypto industry and the government’s regulatory bodies. Per the Coinbase executive, regulation is not only “imminent” but also a “good thing”.
Proposed Crypto “Code of Conduct”
Judging from their detailed Code of Conduct, it seems that the founding members of CryptoUK have put in considerable time and effort to write up these precise and pertinent guiding principles. Notably, the Code of Conduct (CoC) stresses the need for transparency in the crypto industry and “a supportive operating environment”. The CoC also mentions that the UK needs to create proper regulations to “ensure consumer safety” and curb crypto-related crime.
This CoC has been proposed at a time when the crypto-industry is “severely misunderstood” by regulatory authorities and other mainstream organizations because they lack sufficient knowledge of this domain. In fact, that’s why CryptoUK was established, according to Mr. Gandham. With this bold initiative, the eToro director hopes that this organization will be able to help increase understanding and awareness, particularly amongst governmental entities, about crypto-technology.
Trying To Bring Other Regulators To The Table
The CryptoUK group, which aims to be a self-regulatory body, would like other UK regulators such as the Financial Conduct Authority to come onboard and assist them in improving the overall standards of the country’s crypto sector. Presently, the country’s Treasury department is working on amending its anti-money laundering rules to include cryptocurrencies. It’s possible that the Treasury could work alongside the CryptoUK group to try and prevent such illicit activities in the future.
Presently, the UK’s first such group does not cover ICOs. This might be one of the more obvious weaknesses of this group, because numerous scams have been orchestrated under the guise of ICOs. Nevertheless, the formation of this group is a step in the right direction because of the transparency and accountability that it intends to promote. Clearly, the crypto-market could benefit from such measures given the rise of crypto-related crime.