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Seven of the largest players in the cryptocurrency industry in the UK have set up CryptoUK – the first self-regulation organization in the largely unregulated sector, reports The Telegraph.
The seven founding members include the cryptocurrency exchanges Coinbase, CexIO, BlockEx, the social forex broker eToro (also offers crypto investment funds for copy trading and trading in some major cryptocurrencies), the first regulated bitcoin hedge fund CoinShares, CommerceBlock – a public blockchain infrastructure company and last, but not least – the CryptoCompare website.
CryptoUK accepts applications from cryptocurrency exchanges, trading platforms, brokers, comparison sites, intermediaries, merchants and asset managers. ICOs are not accepted for now. The goal of the organization is to become a global leader in this sector, through the development of a supportive operating environment – including appropriate regulation and to safeguard the interests of its members.
CryptoUK has produced a Code of Conduct, which will hopefully ensure greater due diligence against illegal activities and ensure customer funds can pay out in the event of insolvency, as well as safeguards against hacking of customer accounts. The SRO is also seeking the cooperation of UK’s Financial Conduct Authority.
“We hope it [the code of conduct] can form the blueprint for what a future regulatory framework will look like,” CryptoUK chair Iqbal Gandham, UK managing director at trading platform, eToro, told The Telegraph.