CryptoUK urges MPs to back cryptocurrency regulations

Leading industry body CryptoUK has called on the HM Treasury Select Committee to support the cryptocurrency sector and demand government action on regulation.

MPs need to back proposals to regulate the industry in the UK, claims CryptoUK, which include the replication of P2P finance legislation to bring platforms under the FCA’s remit, and ‘crypto-licences’ given to those that adhere to KYC and AML standards.

Regulation should focus on exchanges, brokers and trading platforms, it continues, as this is where digital currencies and fiat interact.

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.

“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.  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.”

Digital currencies are currently under discussion in Parliament as part of a wider inquiry ahead of the EU’s anti-money laundering regulations.

“We hope that the Treasury Select Committee considers these and adopts the ideas when it puts forward its own recommendations to the Treasury,” Gandham added.