The UK’s seven leading cryptocurrency companies have come together and launched a self-regulatory trade body called CryptoUK. The idea is to improve the industry standards and pre-empt the looming threat of financial authorities through a code-of-conduct. Recently, seven of Indian exchanges also came together to form BACC to maintain a real-time traders’ database.
Code of Conduct for Industry-wide Self Regulation
CryptoUK is the self-regulatory trade body of the leading UK cryptocurrency companies. It will represent the interest and raise understanding of the cryptocurrency sector. Initially, the body will cover the trading and exchange platforms along with comparison sites. It would also represent merchants, intermediaries, asset managers, and providers of crypto-based investment and hedge funds.
Currently, ICOs are not covered but the working group is certainly considering them. Moreover, CryptoUK is also open to the new members who are willing to sign up for the code of conduct.
The first in the UK, this Code of Conduct is mandatory for the members to comply with. The intention behind this is to improve the standards in the industry. This twelve points working document that will evolve over the coming months is inclusive 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 also based on 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
7 Leading UK Crypto Giants form CryptoUK
The seven founding members of CryptoUK are Coinbase, BlockEx, CoinShares, CryptoCompare, CEX.IO, eToro, and commerce block.
For the first year, the UK Managing Director of eToro, Iqbal V Gandham has been the elected chair. Gandham responded 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.”
Indian Crypto Exchanges form BACC
Just a few days ago, a similar move of self-regulation had been made by Indian cryptocurrency exchanges. Seven of these crypto exchanges have come together to form the BACC i.e Blockchain and Cryptocurrency Committee of the Internet and Mobile Association of India. They basically collect and pool the users’ trading data via PAN cards and provide this information 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.”
What are your views on the companies or exchanges related to cryptocurrencies making a move to self-regulate? Do you think it could be the approach to lighter the government regulations? Let us know your thoughts below!