Coinfloor is a founding member of the first trade association for the UK cryptocurrency industry
The Cryptocurrency Industry Today
Investment in and use of cryptocurrencies continues to burgeon with both retail and institutional investors. The future of cryptocurrencies brings with it exciting possibilities. The technology offers broadened financial services around the world, and tackles everything from financial exclusion to streamlining the delivery of public services. One day soon, cryptocurrencies could become an integral part of the future financial system and change how we interact with finance forever.
However, a stable, sustainable long-term future for cryptocurrencies will not come down to adoption amongst retail investors, but instead by encouraging the participation of institutional investors. Price volatility and lack of a clear regulatory framework possess challenges for institutional investors as unpredictable market dynamics create unacceptable levels of risk.
Having, amongst the group, the longest-established cryptocurrency exchange in the UK, Coinfloor has maintained self-regulation principles modelled against financial institution best practice since our founding in 2013.
Evolving our Industry
As interest and investment in crypto assets continues to grow, we’ve identified that our industry needs a stable framework for the protection of consumers and industry participants and we are proud to be one of the founding members of CryptoUK.
CryptoUK is a group of organisations representing the UK’s crypto sector who believe that by working together we can ensure the success of the UK crypto industry in fulfilling its potential as a future global leader in this space. We are committed to change, and together work to help educate politicians and regulators about the cryptocurrency space and strive to collaboratively develop balanced operating frameworks for the UK.
We are Passionate about Change
Speaking recently, our CEO Obi Nwosu commented:
‘The ability to react to a developing market and regulatory environment is a key consideration when launching cryptocurrency products. Institutional investors who are evaluating cryptocurrencies as a means of diversifying their portfolios are being held back by a lack of regulation. Our institutional clients are looking for security, stability and reassurance - the things that come with a stronger position on regulation’.
We will continue to work as one of the founder members of CryptoUK to lobby for change and balanced regulatory frameworks for market participants.
We are encouraging MP’s to back the plans for the regulation of trading platforms in the UK and have outlined proposals to the House of Commons Select Committee’s inquiry into digital currencies. This includes the recommendation to bring cryptocurrency platforms under the Financial Conduct Authority’s (FCA) remit and issuing crypto-licenses to platforms which implement approved know-your-customer and anti-money laundering standards.
Whilst these proposals are being reviewed and considered, we are committed to adhering to the best practices and standards set out and agreed by all CryptoUK members in the Key Principles and Code of Conduct.