CryptoUK (a trade group that is self-regulated and dedicated to the crypto industry), has asked for regulatory oversight for the cryptocurrency trading platforms in the region. The trade group, in response to the inquiry of the Treasury Committee into digital currencies, has provided well-explained proposals, and they are asking the MPs to place the cryptocurrency under the authority of the FCA.
The trade group, which counts among its member crypto trading platforms such as Coinbase, Coinfloor, eToro, and many others, announced proposals for how UK crypto trading platform that is regulated could look and calls on MPs to support this notion.
The Suggestions in the Proposal
One of the suggestions in the proposal is a “Cryptocurrency-License” which would be assigned to KYC- and AML-complaint digital currency brokers, exchanges, as well as other trading platforms, that support cryptocurrency and fiat fueled transactions.
Crypto-Licensed exchanges could increase the volume of liquidity in the market, as it could be the last push for institutional investors that are still hanging. Also, the trade group suggests that regulations are kept within the parameters of these intermediaries instead of focusing on the cryptocurrencies themselves.
The trade group said the HM Treasury could rely on a peer-to-peer policy that is already in existence to handle crypt investments under the purview of the financial regulator. The group made reference to the methodology used by lawmakers in Gibraltar and Japan as examples of how the process could be.
Shaping the Discussion
The trade group believes that irrespective of how extensive digital currency investing becomes in the region, the United Kingdom won’t be able to get to its potential as a global market without adequate regulation. CryptoUK lauded the inquiry of the Treasury Committee to scrutinize the impact of cryptocurrencies on the economy. However, CryptoUK is not the first entity to ask for regulation, as other entities have asked for regulation before.