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FameEX Hot Topics | Think Tank Encourages UK to Loosen KYC Regulations for Cryptocurrency to Take the Lead in Web3 Over the US
2023-10-09 16:38:36
Policy Exchange, a renowned conservative think tank, has recently unveiled an extensive report that delves into the intricate realm of Web3, offering a comprehensive set of ten proposals intended to serve as a guiding light for the UK government. This initiative comes at a pivotal juncture, with Web3 companies increasingly departing from the United States due to the prevailing regulatory uncertainties. Consequently, the United Kingdom now stands at the threshold of an extraordinary opportunity to establish itself as a prominent player within the burgeoning Web3 ecosystem. To seize this chance, the UK must craft a well-defined regulatory framework, and Policy Exchange's report aspires to lay the groundwork for this endeavor.
A pivotal concern addressed in the report revolves around the legal liabilities imposed on individuals engaged with decentralized autonomous organizations (DAOs). Drawing inspiration from the regulatory landscape in the United States, where any American citizen, regardless of their historical or present ownership of DAO tokens, can be held accountable for DAO actions, the report advocates for the limitation of such liabilities. This recommendation is rooted in the aim of fostering a more hospitable environment for Web3 innovation to flourish, unburdened by excessive legal risks.
The report also directs its attention to the Financial Conduct Authority (FCA), the United Kingdom's primary financial regulatory body. It encourages a reevaluation of the FCA's approach, particularly emphasizing the need to relax the stringent Know Your Customer (KYC) norms. In its place, the report promotes the exploration of "alternative and innovative techniques," including the adoption of digital identities and blockchain analytics tools. This strategic shift aims to strike a harmonious balance between regulatory compliance and the facilitation of innovation within the dynamic cryptocurrency landscape. In addition, the report underscores the vital importance of preserving self-hosted wallets, ensuring they remain unaffected by potentially restrictive regulations. It advocates for refraining from classifying proof-of-stake services as financial entities, a move intended to maintain the UK's competitive edge and an environment conducive to Web3 development. One of the most intriguing proposals within the report pertains to private stablecoin issuers. The report recommends that these issuers be granted the privilege of storing their reserves within the secure confines of the Bank of England. Such an arrangement could significantly enhance the stability and credibility of stablecoins operating in the UK market, potentially bolstering the trust of investors and users alike. However, it is worth noting that recent regulatory developments within the UK have introduced contrasting perspectives. Discussions are underway regarding the possible prohibition of cold-calling for cryptocurrency investments, alongside the introduction of stringent marketing regulations targeting local crypto enterprises. These developments underscore the complex and evolving nature of Web3 regulation in the UK. Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.
