UK cryptocurrency platforms ask for consolidated plans of regulation

CryptoUK, the self-regulatory body set up to represent the sector, has set out new plans for HM Treasury to make cryptocurrency investment a regulated activity under the Financial Conduct Authority (FCA). The plans are part of a written response by CryptoUK to the House of Commons Treasury Select Committee inquiry into digital currencies, which is currently underway in Parliament.

At a time when ministers are actively considering how to approach cryptocurrency regulation in the UK, ahead of implementing new EU anti-money laundering regulation, the inquiry will be significant in influencing their approach.

CryptoUK’s blueprint includes:

• Regulation should focus on those platforms that are facilitating the interaction between digital currencies and fiat - exchanges, brokers and trading platforms – not on the currencies themselves.

• HM Treasury should use powers to grant the FCA new permissions to govern crypto investment – this can be delivered without the need for Primary Legislation.

• FCA should issue Crypto-Licenses to approved platforms and enforce new requirements including appropriateness checks on investors, anti-money laundering rules and operational standards.

CryptoUK will look to educate politicians and regulators about the cryptocurrency industry, and to work with them in developing an appropriate operating framework for the UK.