UK Crypto Companies Form Self-Regulatory Trade Body

CryptoUK is the self-regulatory trade body of the leading UK digital currency company. It will represent the interest and raise comprehension of the digital currency area. At first, the body will cover the exchanging and trade platforms alongside comparison sites. It would likewise represent to traders, middle men, asset managers, and suppliers of crypto-based investment and hedge funds.

As of now, ICOs are not secured but rather the working group is positively thinking about them. Besides, CryptoUK is additionally open to the new members who will sign up for the code of conduct.

The first in the UK, this Code of Conduct is obligatory for the members to agree to. The expectation behind this is to enhance the standards in the industry. This twelve points working document that will grow over the coming months is comprehensive of:

• Appropriateness checks to ensure the fitness and properness of investors to undertake the transactions
• Any information regarding fees, pricing, associated risks, and leverage should be clearly and proactively disclosed
• As an action against illegal activities, due diligence checks on the platform users
• Fair and clear communication with the customers
• Separating the fiat customer from company funds along with ensuring that the customer funds are payable in case of an insolvency event.

The Code of conduct is likewise in light of three principles:

• The members of CryptoUK must recognize the potential of UK to become a global leader in the FinTech industry and its need for supportive environment for promotion
• Supporting the appropriate industry regulations in the UK by the members
• All the members must take the right measures to maintain standards, act fairly and know their customers along with preventing crime

The seven founding members from CryptoUK are Coinbase, BlockEx, CoinShares, CryptoCompare, CEX.IO, eToro, and CommerceBlock.

For the first year, the UK Managing Director of eToro, Iqbal V Gandham has been the elected chair. Gandham reacted to the launch with:

“We’ve seen an enormous growth of cryptocurrencies in the UK and recognition of both the benefits and the opportunities to make the UK a global leader.

He further added:

“This is a severely misunderstood sector that has great potential to improve our society. But we are hearing instances of rogue operators and consumer harm. That’s why CryptoUK has been established: to promote best practice and to work with government and regulators to ensure that the UK benefits from the exciting potential of this international technology.”

Only a couple of days back, a comparative move of self-regulation had been made by Indian digital currency exchanges. Seven of these crypto exchanges have met up to form the BACC i.e Blockchain and Cryptocurrency Committee of the Internet and Mobile Association of India. They fundamentally gather and pool the users’ trading information by means of PAN cards and give this data to the government agencies.

The head of the BACC, Ajeet Khurana said:

“This is one of the proposals we are planning to submit to the government committee which is looking into the issue of cryptocurrency.”