Principles & Code of Conduct
To promote industry best practice, all CryptoUK members subscribe to its Principles and self-regulatory Code of Conduct. CryptoUK members are committed to working together to update the Code and ensure it is fit for purpose in delivering best practice amongst members.
THREE KEY PRINCIPLES
1. UK leadership
Members recognise the UK’s potential to become a global leader in financial services related to crypto currencies, dependent on the advancement of a supportive operating environment.
2. Promoting appropriate regulation
Members support the introduction of appropriate regulation in the UK to ensure consumer safety, the promotion of best practice, and provide certainty and clarity for cryptocurrency financial service providers.
Members support the Association’s self-regulatory Code of Conduct, including taking the appropriate measures to know their customers, act fairly, maintain operational standards, and prevent financial crime. Members commit to working together to further improve such standards for best practice.
CODE OF CONDUCT
1. Members recognise the UK’s potential to become a leader in the use and development of cryptocurrencies through the pursuit of supportive policies and regulation, as appropriate.
2. Through engagement and cooperation with political, regulatory and legal bodies, members commit to working together, as representatives of the UK cryptocurrency community to:
a. advance a supportive UK operating environment for the use and development of cryptocurrencies;
b. improve and promote best practice to minimise risk to consumer and counter illegitimate use of cryptocurrency technology.
3. Members commit to operating honestly and responsibly in their relationships with consumers, including the proactive disclosure of clear information on pricing, leverage and fees and any associated risks.
4. Communications with customers and prospective customers (including marketing and promotional material) must be fair, clear and not misleading – enabling informed decisions to be made, as required.
5. Publicly available platform information must include details of: The full complaints procedure; the senior management team; the legal form of the business, the registered office address and date of launch; arrangements in case of business failure; and any material changes to the business which impacts customers.
6. Members commit to undertaking appropriateness checks to ensure that investors are fit and proper to undertake transactions.
7. Members commit to ensuring the proactive management of IT infrastructure to prevent leakage, loss and damage of personal information, in accordance with data protection regulations.
8. Members commit to segregating fiat customer from company funds, and to ensuring customer funds are payable upon an insolvency event.
9. For customer funds not being used for trading, liquidity & transfer purposes 90%+ of private keys should be held in cold storage.
10. Where a customer is found to be acting in an illegal manner, members commit to working with the appropriate authorities to prevent, detect and deter such occurrences.
11. In line with anti-money laundering regulations, members commit to undertaking due diligence checks on platform users to protect against illegal activity, including the financing of terrorism.
12. To tackle market abuse, members commit to halting trading if suspicious activity is identified; to suspend and close any accounts engaging in such activity; and to notify the relevant authorities.