The United Kingdom has a chance to capitalize on the departure of Web3 companies leaving the United States due to regulatory uncertainty. But to obtain that, the U.Okay. will want to observe its personal regulatory path, smoothing the necessities for crypto in some regard, in accordance to a suppose tank.
On Oct. 2, the influential conservative suppose tank Policy Exchange printed a report on Web3 with 10 proposals for the U.Okay. authorities, which it claims would assist the nation enhance Web3 regulation.
One proposal made in the report is limiting the liabilities of people who maintain tokens in a decentralized autonomous group (DAO). The report cites a adverse instance of a recent ruling in the U.S. that makes any particular person American who owns or beforehand owned tokens in a DAO liable for any violations of the legislation the DAO commits.
Related: UK to launch Digital Securities Sandbox in Q1 2024
The report additionally suggests the principal U.Okay. monetary regulator, the Financial Conduct Authority (FCA), loosens its present Know Your Customer (KYC) method, permitting for using “alternative and innovative techniques,” reminiscent of digital identities and blockchain analytics instruments.
The consultants say the U.Okay. ought to keep away from undermining self-hosted wallets and regulating proof-of-stake providers as a monetary service. Among different proposals are permitting personal stablecoin issuers to place stablecoin reserves in the Bank of England, making a “tax wrapper” for the crypto alternate and creating a brand new sandbox below the Department for Science, Innovation and Technology.
Recently, U.Okay. regulators have taken a extra stringent method to the digital belongings business. His Majesty’s Treasury is contemplating banning all cold calls selling crypto investments, and the FCA has warned native crypto companies to follow its marketing rules or face penalties.
