CryptoUK says the Treasury Select Committee that is looking into possible impacts of cryptocurrencies and possible regulation should grant permission for FCA to regulate the markets. Further, it says regulation should dwell around licensing of platforms such as exchanges and enforcing new rules in areas of anti-money laundering rules, checks on investors, and operational standards
A U.K. self regulating crypto association known as CryptoUK has written to Treasury Select Committee on cryptocurrencies asking for a favorable regulation. The self-regulating body proposes that the cryptocurrency regulation concentrates on interaction between fiat-exchanges, brokers and trading platforms rather than digital currencies themselves.
The body appears to be supporting the fact that a cryptocurrency regulation will have an impact of “reducing consumer risk and improving industry standards”. However, it says that regulating the “‘on-off’ ramps between crypto and fiat currencies” does not require a primary legislation.
This is according to their chair Iqbal Gandham, who is also the UK managing director at eToro.
It wants the HM Treasury committee to use its power and grant permission to Financial Conduct Authority (FCA) to control cryptocurrency investments. It proposes that FCA regulates the industry by licensing approved crypto exchanges and enforcing new requirements. However in the areas of anti-money laundering rules, checks on investors, and operational standards.
Just a handful of countries around the world have a regulation specific to cryptocurrencies. Again, most of the regulation develops from the concept of controlling use of cryptocurrencies in crime as well as identification of users.
Gandham said regulation is working in some countries such as Japan and Gibraltar that now “lead over the U.K.”
“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.”
Further, CryptoUK is of the opinion that regulators need to strike a balance. Thus, between protecting the customer and businesses and need to avoid stifling innovation.