The UK needs to relax KYC requirements for cryptocurrencies if it wants to overtake the US in Web3

The UK needs to relax KYC requirements for cryptocurrencies if it wants to overtake the US in Web3

The UK has an opportunity to benefit from Web3 companies leaving the US due to regulatory uncertainty. But to achieve this goal, according to one think tank, the country will have to follow its own regulatory path, simplifying requirements for cryptocurrencies somewhat.

October 2 Policy exchangepublished by an influential conservative think tank a report On Web3 with 10 proposals for the British government He said this would help the country improve regulation of this sector.

One of the proposals presented in the report is to limit the obligations of individuals holding tokens in a decentralized, autonomous organization (Dao). The report cites a negative example Because of the recent ruling in the United States This makes any US individual who owns or previously owned DAO tokens liable for any violations of the law committed by the DAO itself.

Related: UK to launch digital securities sandbox in Q1 2024

Moreover, the report suggests Financial Conduct Authority (FCA), the main financial regulatory body in the United Kingdom, to facilitate the current “Know Your Customer” (KYC) approach, allowing the use of… “Alternative and innovative technologies”, Such as digital identities and blockchain analysis tools.

Experts say the UK should avoid obstructing self-hosted wallets and regulate proof-of-stake services such as financial services. Other proposals include allowing private stablecoin issuers to place their reserves with the Bank of England, creating a stablecoin “tax envelope” To trade cryptocurrencies and create a new sandbox under the Ministry of Science, Innovation and Technology.

newly, UK regulators have taken a tougher approach to the digital assets sector. The UK Treasury is considering banning all cold calls promoting cryptocurrency investments, and the Financial Conduct Authority (FCA) has warned local companies in the sector. To follow its own marketing rules Or suffer the consequences.

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Translated by Matteo Carone

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