Seven of the largest crypto companies are forming a UK cryptocurrency trade body, bringing in the first self-regulation for the wild west sector worth £290 billion.
CryptoUK, whose members include the popular Coinbase exchange and trading platforms eToro and CryptoCompare, said it had produced the first code of conduct for the industry to abide by.
The companies said they hoped the regulations would form the first part of broader UK rules around volatile cryptocurrency trading.
Bitcoin's rise last year has made it a popular phenomenon, with its value increasing to as much as $20,000 (£14,400) in December, before falling below $7,000 last week. While Bitcoin has made made some millionaires it has left many amateur investors out of pocket, while others have fallen victim of cryptocurrency scams.
CryptoUK chair Iqbal Gandham said there was a risk of "rogue operators", but the new body had been established "to promote best practice and to work with government and regulators".
The group, which is self-regulating, is also seeking buy-in from the government and official regulators such as the Financial Conduct Authority. The Treasury is currently working on amendments to international money laundering rules to include Bitcoin and cryptocurrencies with an update expected in the coming months.
The group said the new body did not include Initial Coin Offerings, or ICOs, which see investors buying digital tokens in startups, often with no guarantees for their investment.
Font: http://www.telegraph.co.uk/technology/2018/02/13/bitcoin-exchanges-form-first-uk-trade-body-regulators-circle/
Topic: Bitcoin companies form first UK trade body as regulators circle (Read 110 times)
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