The UK is planning to enact new crypto regulations, hoping to grow the domestic Web3 industry while protecting consumers. It will develop new policies in dialogue with US counterparts, including Scott Bessent.
However, the community has reacted with skepticism, as the Treasury emphasized its continued willingness to crack down on bad actors. Regardless of what lessons Britain takes from the US, it doesn’t seem interested in laissez-faire regulation.
Crypto Regulations are Changing the UK
Friendlier crypto regulations are sweeping the world, with the US leading bold new changes. The SEC’s new Crypto Task Force is conducting direct dialogues with business leaders, and a comprehensive stablecoin framework is a top priority.
In this environment, the UK’s own plans to reform crypto regulation bear similarities and differences:
“Through our Plan for Change, we are making Britain the best place in the world to innovate — and the safest place for consumers. Robust rules around crypto will boost investor confidence, support the growth of Fintech and protect people across the UK,” Rachel Reeves, Chancellor of the Exchequer, claimed.
The Treasury publicized several documents proposing some of the changes that may happen in UK crypto regulation. These changes are heavily influenced by US cooperation; Reeves personally met with Treasury Secretary Scott Bessent.
They discussed several topics, including a cross-border regulatory sandbox, which the industry has been supporting.
She also announced an upcoming UK – US Financial Regulatory Working Group to further coordinate policy goals. However, the Treasury’s messaging on UK crypto regulation has a decided focus on fighting bad actors.
US regulators, on the other hand, have repeatedly expressed a desire to end crypto crackdowns in every possible area.
In other words, the British Treasury seems to support pro-industry development without a laissez-faire attitude, which has prompted some community skepticism.
In the past, UK crypto regulations have been accused of overreach, prompting some firms to leave the nation. This reputation may hamper serious Web3 growth.
“Sad because it’s actually true. The UK can barely operate the basics, yet they want to lead the digital era? Delusional!” claimed The Crypto Professor in response to derisive social media statements about British crypto reform.
Still, it may be too early to count Britain out just yet. The government will publish an actionable plan to update crypto regulation in the UK by July, giving it plenty of time to set policy.
A lot could change in that time, especially if it’s coordinating with counterparts in the US. At the moment, it’s too soon to predict the outcome.
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