Seven of the biggest crypto companies BlockEx, CEX.IO, Coinbase, CoinShares, CommerceBlock, CryptoCompare, and eToro have come together to form a first of its kind self-regulatory UK trade body for the cryptocurrency industry called CryptoUK.
The move is seen as a pre-emptive move against the ever-looming threat of the financial authorities. According to information made available, CryptoUK will represent the interests of the entire cryptocurrency sector. Initially, the body covers exchanges, trading platforms and comparison sites for buyers and sellers of tokens. Also represented are intermediaries and merchants, those who facilitate and accept payments and transactions. And finally, asset managers and providers of crypto-based hedge and investment funds.
The code of conduct is a twelve point working document which all members must subscribe to. It is based on three key principles:
- UK leadership: Members recognize the UK’s potential to become a global leader in the FinTech industry. And that this requires the promotion of a supportive environment.
- Promoting appropriate regulation: Members support the introduction of appropriate industry regulation in the UK. This should serve consumer safety, promotion of best practice, and provide certainty and clarity.
- Self-regulation: Members must take appropriate measures to know their customers, act fairly, maintain standards and prevent crime. They must also work together to further improve the standards within the code of conduct.
It certainly can’t hurt for the UK crypto-industry to throw its own set of regulations into the ring before having the government’s rules thrust open it. We must hope that this organization attracts a large membership and shows that the industry can self-regulate.
This should encourage the authorities to apply a lighter regulatory brush, enabling this trade body to set the agenda. Bravo for them.