Preventive Measures: UK Crypto Companies to Form a Self Regulatory Body

In the United Kingdom, seven of the largest cryptocurrency exchanges and other crypto companies are forming a trade body to impose self-Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term on digital coins.

According to The Telegraph, CryptoUK reportedly produced the first code of conduct by which the nascent industry must abide.

CryptoUK chair Iqbal Gandham, who is also the managing director of eToro, admits to the risk of “rogue operators” in this industry, but he is optimistic with the self-regulatory body, as it had been established “to promote best practice and to work with government and regulators." The Telegraph further quotes Mr. Gandham: “We hope it can form the blueprint for what a future regulatory framework will look like.”

CryptoUK members include major global cryptocurrency exchanges such as Coinbase and trading platforms eToro and CryptoCompare. Coinbase UK CEO Zeeshan Feroz says “The fundamentals are engaging as a single industry with the government. Regulation is imminent and that’s a good thing."

Four popular cryptocurrency companies — BlockEx, CEX.IO, CoinShares, and CommerceBlock — join the trade body.

All trade body members must sign a code of conduct. According to CryptoUK, this ensures greater due diligence against any illegal activity and in the event of insolvency, ensures that customer funds can pay out. Furthermore, self-regulations safeguard the vulnerable industry from cyberattacks.

Regulations in the EU

The authorities in the UK and the EU maintain a tough regulatory stance with Bitcoin and other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. Recently warnings issued speak to Bitcoin investments as "a bubble." Earlier, both EU and UK regulators had threatened to crack down on cryptocurrencies.

European Union top banking, securities, and pensions watchdogs say in a statement: “[Cryptocurrencies] are highly risky, generally not backed by any tangible assets and unregulated under EU law, and do not, therefore, offer any legal protection to consumers.”