Crypto self-regulatory body CryptoUK has offered proof to a Treasury Select Committee and cautioned the UK government it must control the sector or risk missing out “on the largest technology since the internet.”
Wednesday, June 20th, 2018, CryptoUK president and UK managing director of social investment platform eToro, Iqbal V. Gandham, alerted the UK diplomats that the United Kingdom risk missing out on the global crypto economy if it fails to invoke the sector within the remit of financial services act.
CryptoUK, which includes BlockEx, CEX.IO, eToro, Coinfloor, CommerceBlock, Coinbase, CryptoCompare, and Coinshares, believe that checking crypto exchanges under financial services rules will aid crypto investors.
Gandham called on the Treasury Select Committee and UK authorities to take a “straightforward, light-touch” avenue to regulation by bringing on crypto exchanges under the control of the Financial Services and Markets Regulation.
Gandham thinks the UK administration needs to act fast, as outside regulation the UK could stumble behind the rest of the world when it comes to cryptos and blockchain technology.
“We made this mistake to our cost 25 years ago with the rise of the internet – the UK economy cannot afford to do so again. Regulatory certainty is crucial to promoting innovation for the future,” Gandham.
CryptoUK had in the past issued a written reply to the Treasury Select Committee’s research into digital currencies which kicked off in February 2018. Also, the Members of Parliament (MPs) are interrogating the position of cryptos in the UK involving the risks to end-users, businesses, and the government.
The committee will also look at the benefits of cryptos and blockchain technology including how they could generate chances for the UK economy.
“Striking the right balance between regulating digital currencies to provide adequate protection for consumers and businesses, while not stifling innovation, is crucial. As part of the inquiry, we will explore how this can be achieved,” said Nicky Morgan, chair of the Treasury Select Committee.
CryptoUK believes that regulation should concentrate on exchanges, brokers, and platforms rather than cryptos themselves. Likewise, that the Financial Conduct Authority (FCA) in the UK should be accountable for giving out licenses to accredited platforms and enforcing anti-money laundering (AML) laws and operational benchmarks.