The UK Treasury’s recently published consultation paper inviting views on UK crypto regulations drew a lot of response.
The UK Treasury has received a good response to its consultation paper published in February, which invited views from the blockchain industry. Several industry captains responded, with some suggesting a few changes while most welcomed the framework with positivity.
Blockchain firm Polygon Labs and other venture capital firms like Andreessen Horowitz (a16z), the Digital Pound Foundation (DPF), and the Association for Financial Markets in Europe (AFME) recently made their comments public on the UK crypto regulations.
a16z appreciated the UK Treasury’s call that the principle of the same regulatory outcomes for the same risks was not exactly implying that it would be appropriate to regulate all cases with the same regulatory actions. It called for regulating activities rather than direct assets.
Polygon Labs echoed their opinions on the same, saying, “The source of risk in DeFi systems is significantly different than that in centralized systems, like CeFi or the traditional financial system. To this end, it may be more accurate to update: ‘same risk, same regulatory outcome’ to ‘different source of risk, same regulatory outcome.'”
With their statements, both firms supported the activity-based regulating approach for the blockchain industry. The AFME underlined the same, along with emphasizing the importance of a global taxation approach towards the regulations.
The Digital Pound Foundation (DPF) also commented on the rule of ‘same risk, same regulatory outcome’ and invited further clarifications from the UK Treasury on the classification of stablecoins.
The UK government is expected to respond to the suggestions and opinions and hold further discussions on the UK crypto regulations in the near future.