Led by self-regulating body CryptoUK, the British blockchain industry is reportedly urging members of parliament to back their plans for government regulation. CryptoUK’s plans for regulation were laid out in a written response to an inquiry into cryptocurrencies by the House of Commons Treasury Select Committee.
The proposals include a procedure for granting “crypto licenses” to firms who meet certain KYC and AML standards. CryptoUK has also called on MPs to replicate peer-to-peer finance legislation to bring cryptocurrency platforms under the Financial Conduct Authority’s (FCA) jurisdiction, eliminating the need for Primary Legislation.
The Goals: Reduce Consumer Risk and Improve Industry Standards
CryptoUK Chairman Iqbal Gandham said that “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.”
The letter also explained that rather than regulating digital currencies themselves, MPs should create legislation that provides legal guidelines for exchanges, brokers, and trading platforms.
“This is an approach which is already working well in other countries, who are now taking the lead over the UK, for example in Japan and Gibraltar,” he added.
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A growing number of self-regulatory bodies have formed across the blockchain industry as a way to educate their respective governments and collaborate on regulation and lawmaking. Crypto firms in India joined to create DABFI (the Digital Asset and Blockchain Foundation of India) in February of 2017; bodies have also formed in Croatia, Slovenia, and Japan.
CB is one of only seven UK crypto companies forming a self regulating crypto trade body -CryptoUK- standing alongside eToro, CoinBase, CoinShares, BlockEx, CEX IO & CryptoComparehttps://t.co/WTuQue4J3U@CoinSharesCo @eToro @coinbase @BlockEx @CryptoCompare @cex_io $CBT #BIP175
— CommerceBlock (@commerceblock) February 13, 2018
CryptoUK was formed earlier this year. In an exclusive interview with Finance Magnates, Iqbal Gandham said that the primary interest of the organization was to create regulations that would benefit users the most. “The majority of [the guidelines]–if not all of them–are related to protecting the end consumer,” he said.