CryptoUK: the British attempt of industry self-regulation of the cryptocurrency

13 Feb seven other cryptocurrency companies in the UK announced the creation of CryptoUK – self-regulatory organizations, whose role will be to improve industry standards and interaction with the political sphere.

CryptoUK plans to work to improve the understanding of the cryptocurrency industry. The organisation urged the government to introduce appropriate regulation to protect market participants, to ensure the prosperity of the crypto industry in the UK. The activities of the members of the organization regulated by the Code. Means that over time the Code will be developed and updated in cooperation with the community, political figures, and a wide range of people forming an opinion.

The code of the organization

CryptoUK in accordance with the Code undertakes the following functions:

  • Control of correctness and compliance carried out by the investors of the transactions, the scope of their activities;

  • Check the degree of protection of users from illegal activities;

  • Freezing and the disposal of funds of companies in case of their insolvency and the return of funds to customers;

  • Creating and maintaining clear and open communication with customers;

  • Advance information on pricing, measures, fees and any risks involved;

  • Secure commitment of using the «cold wallets» where necessary.

At the initial stage in CryptoUK the combined efforts of seven members-founders, which include trading platforms, stock exchanges, reference sites, brokers, dealers and asset managers: BlockEx, CEX.IO, Coinbase, CoinShares, CommerceBlock, CryptoCompare and eToro.

CryptoUK headed by managing Director eToro – Igbal VI Gandham (Iqbal V Gandham), which elected President of the organization for a period of one year. Current members of the organization expressed the hope that in the coming months they will be joined by other participants.

Currently CryptoUK not associate their activities with the ICO, but in the future undertakes to develop a separate Code of conduct for this process.

Comments the management of the organization

Igbal VI Gandham, Chairman CryptoUK, commented on the launch:

«We have seen significant development of cryptocurrency in the UK and see the benefits for the UK and opportunities to become a world leader [in the industry].

We are extremely proud to have assembled some of the leading players in this sector. This Association is not only connected with the exchange [of cryptocurrency], we represent the whole cryptococci with the exception of ICO. We are all United by the desire to develop in the UK and need to work together with the government over how it will look our environment [scriptural] in the future.

To a large extent still untapped sector that has great potential to improve our society. But we also are familiar with cases of fraud to the detriment of consumers. That’s why was created CryptoUK: to promote best practices and work with government and regulators to ensure the UK benefits from the exciting potential of this technology.

The code is the basis of everything we do. It’s not finished. It will be improved and this will happen in cooperation with industry, politicians etc. We hope that it [the Code] will help to structurally determine the future regulatory framework».

Why have you chosen UK

The reaction of governments and regulatory bodies in the UK to create CryptoUK is not followed. Until now, this country belonged to the crypto currency quite well, but has a policy of monitoring, and the drafting of legislation to control the activities of cryptocurrency business seriously not even started. The UK, despite the significant number here of cryptocurrency companies and started to play a significant role in the global cryptocurrency market. It can be seen and the composition CryptoUK — in addition to the branch Coinbase, it does not present the representatives of the leading players in the industry, so the impact of the organization, both globally and for the UK market should not be exaggerated, yet it will not be able to expand and gain influence.

On the other hand, the choice of the UK for longer than transparent by English law is considered the most Mature legal system in the world, and on its basis created by the laws of most Commonwealth countries, mainly consisting of former britanskih colonies, and the United States. If CryptoUK will be able to create a successful precedent of collaboration with the government — this will be a strong argument for regulators of many Western countries in the development of cryptocurrency law. But the new organization Code may be adopted as a prototype for similar organizations around the world.

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