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The UK needs to relax KYC requirements for crypto if it wants to overtake the US on Web3

The UK needs to relax KYC requirements for crypto if it wants to overtake the US on Web3

The UK has an opportunity to take advantage of the exodus of Web3 companies from the US due to regulatory uncertainty.. But to achieve this goal, according to a think tank, the country should follow its own regulatory path, somewhat easing the requirements for cryptocurrencies.

October 2nd Policy exchangeAn influential conservative think tank, published A statement on Web3 with 10 projects for the UK government This, he said, would help the country improve regulation of the sector.

One of the proposals presented in the report is to limit the liabilities of individuals holding tokens to a decentralized autonomous entity. (DAO). The report shows a negative example A recent judgment in the United States This makes any US person who owns or previously owned tokens in the DAO liable for legal violations committed by the DAO itself.

Related: UK to launch digital securities sandbox in Q1 2024

Also, the report recommends Financial Conduct Authority (FCA), the UK’s main financial regulator, is allowing the use of its existing Know Your Customer (KYC) approach to facilitate “Alternative and Innovative Techniques”, Such as digital identities and blockchain analytics tools.

Experts say the UK should avoid blocking self-hosted wallets and regulate proof-of-stake services like financial services.. Other proposals include allowing private stablecoin issuers to deposit their reserves with the Bank of England. “Tax Envelope” Establishing a new sandbox under the crypto trading and science, innovation and technology sector.

Recently, UK regulators have taken a tougher approach to the digital assets sector. Her Majesty’s Treasury is considering banning all cold calls promoting crypto investments, and the FCA has warned local businesses in the sector. Follow its marketing rules or suffer the consequences.

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Translation by Matteo Caron