Belarus-based trading platform Currency.com has joined forces with CryptoUK to help achieve the latter’s goal of achieving a favorable regulatory framework for the UK cryptocurrency industry. CryptoUK primarily intends to achieve this by collaborating with companies within the ecosystem to educate government bodies and regulators, assist in the development of regulations guiding the industry and ensure that best practices and standards are upheld.
Another Partnership for CryptoUK
Prior to the addition of Currency.com as an Executive Member, CryptoUK already boasted a long list of heavyweights in the cryptocurrency sector including Crypto.com, eToro, Electroneum, and Fireblocks, Iconomi, Wirex, etc.
Currency.com Head of Strategy, Vitaliy Kedyk recognizes the need for progressive, innovation-friendly regulations and the place of industry players in ensuring this is attained. Speaking on the company’s newly formed alliance with CryptoUK, he said:
“Consumer and institutional adoption of cryptocurrencies and tokenized assets have grown steadily in recent months, suggesting the sector is on the cusp of turning mainstream. As demand for cryptocurrency picks up, regulation and best practices must continue to keep up with changes in the industry. To foster greater dialogue, collaboration, and knowledge-sharing between the burgeoning crypto sector and regulators, we have joined CryptoUK as an Executive Member. Currency.com is committed to ensuring the integrity of the UK crypto sector and the security of its investors and we have every confidence that we can achieve this with CryptoUK.”
Chair of CryptoUK, Ian Taylor also shared his thoughts on the collaboration, stating that Currency.com will introduce “significant local and global expertise to our Executive Committee and its initiatives”. He also expects the trading platform to significantly bolster the UK’s prospects of becoming a global leader in the cryptocurrency industry, as well as its workforce. Currency.com became the tenth executive member of CryptoUK and will join the rest of the executive member companies to help “lead the association’s strategic direction”.
With the UK crypto industry on the cusp of regulatory overhaul, CryptoUK’s mission provides more than just a glimmer of hope to exchanges and other cryptocurrency companies operating in the country. In October 2020, UK regulatory watchdog, Financial Conduct Authority (FCA) banned the sale of derivative products to retail customers, forcing a number of derivative trading platforms to cease operations in the country. FCA cited reasons of investors’ lack of knowledge of the market and the lack of basis for valuation of derivative products. A survey held and published by the body however proved otherwise, as the majority of the 2,681 participants stated that they were knowledgeable about cryptocurrencies and their inherent volatility.
The FCA would later ban leading cryptocurrency exchange Binance for allegedly operating without a license. In a statement published on its website, FCA outlined that “No other entity in the Binance Group holds any form of UK authorization, registration or license to conduct a regulated activity in the UK”. The ban sparked widespread concerns and raised question marks on the UK’s stance on digital assets and fintech.
These setbacks highlight the growing significance of self-regulatory associations such as CryptoUK in the quest for a favorable regulatory framework.