This Working Group has been set up in order to establish a best practice framework for the regulation of digital currencies in the UK. As part of this endeavour, and in consultation with the established regulatory authorities, the Group will set regulatory and security standards that UK based marketplaces and other third-party guardians of digital currency deposits will be expected to honour in order to retain their membership. Also, in consultation with the accounting profession, the Working Group will examine relevant accounting treatments and propose appropriate accounting standards that can be applied to digital currency businesses operating in the UK.
The objectives of the Working Group are to ensure that digital currency marketplaces and businesses in the UK treat customers fairly and employ best industry standards in order to ensure that all client funds are held securely and with the maximum possible transparency. In addition, our members should adhere to the established regulatory framework governing anti-money laundering (AML), know-your-client (KYC) and other requirements that may be required by the UK authorities. In terms of accounting, the Working Group will seek to adapt existing accounting standards and principles to fit the specific particularities of the Bitcoin protocol, as well as other digital currency protocols.
In the context of regulation, the UKDCA will work with the various government bodies to achieve the best regulatory framework for UK companies working in this field.