Seven U.K.-based cryptocurrency companies on Tuesday linked up to create CryptoUK, a self-regulatory trade body to set standards for the volatile sector.
The group’s founding members includes trading platforms, exchanges, intermediaries, and asset managers, among other sorts of firms.
The trade body is creating a code of conduct designed to improve operating standards and consumer protection by introducing standards in various areas, including suitability, due diligence to prevent illegal activity, client asset protection, and standards for disclosure.
The code will be updated in the months ahead based on feedback from both the industry and policymakers, CryptoUK says.
Additionally, the group will call on government to introduce appropriate regulation in the sector to protect consumers and provide greater business certainty. It also aims to develop a code of conduct for initial coin offerings (ICOs).
“This is a severely misunderstood sector that has great potential to improve our society. But we are hearing instances of rogue operators and consumer harm. That’s why CryptoUK has been established: to promote best practice and to work with government and regulators to ensure that the UK benefits from the exciting potential of this international technology,” says the first chairman of the group, Iqbal Gandham, managing director of eToro, in a statement.
“The code of conduct is at the heart of everything we do. It is not finished. It will be improved and refined, in collaboration with industry, policy makers and others. We hope it can form the blueprint for what a future regulatory framework will look like,” adds Gandham.
CryptoUK’s founding members includes trading platforms, exchanges, intermediaries, and asset managers, among other sorts of firms.