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Collaboration ‘Will Cut Cryptocurrency Risk’

UK Finance believes financial institutions working together will be key to reducing fraud risk in the cryptocurrency sector.

Earlier this week, the body, which represents 300 businesses in the financial industry, released a report looking to the crime risk posed by cryptoassets, as well as making recommendations on how this can be effectively managed.

It concluded: “Given the global nature of cryptoassets, an enhanced level of co-operation and collaboration between regulators and the industry is required.”

The report stated: “In line with regulatory objectives, this could lead to more efficient registration, supervision and consumer protection.”

While it was noted that banks are increasingly partnering with cryptoasset companies, future partnerships across the industry will only be possible with “adequate compliance controls and risk mitigation measures, information-sharing, public-private partnership and industry standards”.

In the foreword to the report, UK Finance chairman Bob Wigley said efforts to encourage collaboration by producing an effective regulatory framework “will help the UK realise the potential of this new sector for consumers and for economic growth”.

By working together, institutions will be able to steer towards a more secure process of risk management and protect clients.

Cyber-security firm Kaspersky advised potential investors to avoid any cryptoasset opportunities displayed on websites that lack security credentials; advertised in emails from an unknown domain; or when asked to provide private information to pay for a good or service purchased online.

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