Regulatory Intervention To Legitimise The Market This Is What UK Cryptocurrency Bodys Calls For.
The cryptocurrency community of the UK calls on the Government and the Financial Conduct Authority (FCA) to tighten the rules for trading virtual currencies and grant licenses to companies that show compatibility.
Crypto UK, which is the self-regulatory body set up to perform the sector, has set forth new plans for HM Treasury to make cryptocurrency investment a regulated activity under the Financial Conduct Authority (FCA).
The plans are published in the written response by CryptoUK to the House of Commons Treasury Select Committee inquiry into electronic currencies, which is currently underway in Parliament.
According to the mentioned Group it believes that the new rules must be applied to exchanges, brokers and trading platforms that promote the interaction between digital currencies and paper money. It assumes that the FCA should be encouraged to issue “Crypto-licenses” to approved platforms and ensure compliance with new requirements, including compliance testing, anti-money laundering rules and operational standards.
Iqbal V Gandham, chair of CryptoUK, says: “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.
“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.”