UK CryptoCurrency Industry Calls on Government to Back Plans for Regulation

Avi Rosten
  • Industry body called on HM Treasury to back the sector and regulate appropriately
  • Proposed legislation includes the issuing of "crypto licences" and anti money laundering rules

Crypto UK - the body that represents the UK’s leading cryptocurrency platforms - has today called on the Treasury to regulate the industry.

The self-regulated body, made up of leading platforms such as Coinbase and CryptoCompare, has urged a group of influential MPs to back the young cryptocurrency industry in an effort to legitimise the sector.

Laying out their proposals in response to the House of Commons Treasury Select Committee inquiry - under way today in Parliament - the group recommended several steps to shore up the space.

Among the most significant are the recommendation to apply existing legislation from other peer-to-peer finance - bringing platforms under the FCA’s (Financial Conduct Authority) remit, issuing “crypto-licences” to approved platforms, and enforcing new standards such as checks on investors and anti-money laundering rules.

Advising that regulation focus on platforms that facilitate currency and fiat exchange rather than currencies themselves, Iqbal V. Gandham, Chair of CryptoUK, said:

“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.”

Iqbal V. Gandham

Adding that:

“This is a wonderful opportunity for government to take a proactive stance, putting action where there are positive words and reinforcing the UK’s role as the world’s financial capital.

Iqbal V. Gandham

Regulatory environment

This latest drive for greater legitimacy comes at a time of growing regulatory scrutiny of the industry, with the European Parliament recently voting to improve regulation of cryptocurrencies in an effort to curb money laundering and other criminal activity, and other jurisdictions such as Taiwan announcing similar plans.

 

Featured Image Credit: "The British Parliament and Big Ben" by "Maurice" via Flickr; licensed under "CC BY 2.0"