Trade Association CryptoUK Calls for favorable FCA cryptocurrency regulations. It is also reported that the group believes that HM Treasury should provide the Financial Conduct Authority (FCA) with permissions to control crypto investment.
2 May, AtoZ Markets – A self-regulatory trade association for the UK cryptocurrency industry, CryptoUK, has called for the UK officials to adopt favorable regulations in the country. The association has reportedly addressed a number of Members of Parliament (MPs), asking them to act on the initiative for the crypto regulations.
Trade Association CryptoUK Calls for Favorable FCA Cryptocurrency Regulations
The CryptoUK has laid out its proposals to the Treasury Select Committee's inquiry into cryptocurrencies. The inquiry aims to inspect the role of digital currencies in the UK. This also includes risks that are associated with their utilization by consumers, government and businesses.
The regulators from all around the globe are claiming that cryptocurrencies can be the instruments for criminal activity. CryptoUK, in contrast, has stated that regulation should concentrate on brokers and trading platforms. This is instead of cryptocurrencies themselves.
It is also reported that the group believes that HM Treasury should provide the Financial Conduct Authority (FCA) with permissions to control crypto investment. Moreover, CryptoUK has proposed that the UK regulator would be responsible for licensing the cryptocurrency exchanges and setting out new requirements. These would include anti-money laundering practices and operational standards.
How will regulation affect the market?
The chair of CryptoUK and UK managing director at eToro, Iqbal Gandham, has been quoted as saying:
“Introducing a requirement for the FCA to regulate the 'on-off' ramps between crypto and fiat currencies is well within the remit of HM Treasury. Based on our analysis, this could be achieved relatively easily, without the need for primary legislation, and would have a huge impact, both in reducing consumer risk and improving industry standards.”
He has also noted that this approach has proved efficient in other countries, such as Gibraltar and Japan. He has stated that this is a unique opportunity for officials to adopt a proactive position.
CryptoUK is an organization of seven largest cryptocurrency companies that attempt to self-regulate within the UK crypto sector. The association includes the following entities: Coinbase, eToro, CryptoCompare, CEX.IO, BlockEx, CoinShares, and CommerceBlock.
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