Brian Quintenz, a commissioner with the US Commodity Futures Trading Commission, advised crypto industry to form a group to facilitate self regulation in face of clampdowns around the world. Days after this, CryptoUK turns up, a UK cryptocurrency trade body. Seven of the largest crypto companies in the UK comprise this body.
CyptoUK said it has produced a code of conduct for the industry, which is first of its kind. CryptoUK chair, Mr. Gandham added: “We hope it can form the blueprint for what a future regulatory framework will look like.” The member firms will sign up to the code which will inturn ensure better due diligence and safeguard customer funds in event of insolvency.
Surprisingly, the group did not include ICOs (Initial Coin Offerings), probably to keep up on the conservative side. Consequently, they are expecting a buy-in from official regulators.
CryptoUK member Coinbase chief executive hinted that the industry in convening into one whole and regulation was imminent. He further added that this should be seen as coming of age of the industry.
Amidst this optimism, UK government and EU regulators warn investors of the risk of a bitcoin bubble. Regulators has threatened a crackdown on crypto currencies.
The European Supervising Authorities issued a warning to crypto investors informing a potential loss of all money in case of a pricing bubble. “[Cryptocurrencies] are highly risky, generally not backed by any tangible assets and unregulated under EU law, and do not, therefore, offer any legal protection to consumers,” the agency said in a statement.