UK Cryptocurrency platforms have today urged MPs to support their proposals in making cryptocurrency investments a regulated activity under the Financial Conduct Authority (FCA), aiming to bring a controlled approach to digital currencies in the UK.
“This is a wonderful opportunity for government to take aproactive stance, putting action where there are positive words and reinforcing the UK’s role as the world’s financial capital,” Iqbal V Gandham, Chair of CryptoUK, said,
“Introducing a requirement for the FCA to regulate the ramps between crypto and fiat currencies is well within the remit of HM Treasury and it would have a huge impact in both reducing consumer risk and improving industry standards.”
Regulatory body CryptoUK has set out the plans, as part of the on-going inquiry the Treasury Committee is carrying out into the use of digital currencies in the UK; assessing the risks and benefits to businesses and individuals by using digital currencies.
“We welcome the decision by the Treasury Select Committee to undertake an inquiry into digital currencies,” CryptoUK said. “The UK holds great potential to become a global leader in cryptocurrencies, as is already the case for the wider financial services sector. However, the absence of regulatory direction, despite huge growth in popularity amongst retail investors, makes this inquiry well-timed.”
CryptoUK’s blueprint outlines the regulation should focus on “platforms that are facilitating the interaction between digital currencies and fiat, not on the currencies themselves”, in addition to urging HM Treasury to use its power to grant new permissions to the FCA to allow crypto investment.
Another proposal made includes the FCA issuing ‘Crypto-Licenses’ to approved platforms, as well as enforcing new requirements including checks on investors; anti-money laundering rules and operational standards.
The regulatory body urges MPs to follow their plans, after the success other countries have found using Japan and Gibraltar as examples.
“We hope that the Treasury Select Committee considers these and adopts the ideas when it puts forward its own recommendations to the Treasury,” Gandham said.
CryptoUK’s pledge follows the news today that London Block Exchange (LBX), the UK’s dedicated cryptocurrency exchange, has added Bitcoin Cash and Ethereum Classic to its offerings.
“Since launching, we’ve proven incredibly popular among UK crypto-enthusiasts, given our low cost trading and excellent app,” LBX Founder and CEO Benjamin Dives, said: “We’re now strengthening the fact we offer more coins than most popular exchanges and are listening to the community in deciding which coins we will list.”
Adding the two cryptocurrencies takes LBX’s total coin listing to six. LBX opened in November for OTC trades; the aim to provide a safe and easy exchange for consumers and investors via its online platform an app.