On the other side of the Atlantic, Coinbase CEO Brian Armstrong wants it to be so competitive that it competes directly with the United States on the global crypto playing field. Armstrong and other industry leaders have cautioned that sluggish licensing procedures, funding obstacles, and ambiguous policies could compel UK-based startups to relocate. Overall, the UK government is by no means treading water but is instead full throttle ahead to establish innovation within the digital token and broader crypto economy. Simultaneously, they are focused on advancing strong consumer protection.
Industry Leaders Voice Concerns Over Regulatory Pace
Armstrong's recent visit to the UK underscores Coinbase's strategic shift toward markets demonstrating openness to crypto innovation. There are growing doubts in the industry about the pace and punch of UK regulators’ bold new plan.
In a recent poll of 150 crypto and finance professionals, the answer might shock you. Only 15% believe the UK is currently on the right track when it comes to regulating crypto. This feeling is indicative of larger fears that the UK is lagging behind other jurisdictions in the race to attract and retain crypto businesses.
Ripple is not alone in its recent pressure on UK authorities to push forward with crypto legislation, with the warning that a “window of opportunity” is closing. The consensus is loud and clear—the time for the UK to act is now. By providing a clear and supportive regulatory framework, it will be best positioned to leverage the significant global momentum around cryptocurrencies.
UK's Regulatory Efforts and Future Plans
The UK government has published draft legislation towards a full-blown crypto asset regime, with a stated aim of implementation by 2026. This initiative comes on the heels of other successful regulatory challenges and seeks to implement crypto-friendly regulations.
On June 13, an industry consultation on crypto regulation ended. Its professed goal was to solicit additional public comment on staking, lending and Decentralized Finance (DeFi). These are all positive signs of a serious effort to get ahead of and appreciate the true complexities of the ever-evolving crypto landscape.
"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," - Chancellor of the Exchequer Rachel Reeves
Government, for its part, wants to position Britain as a world leader in innovation. It remains dedicated to upholding consumer safety and protection.
Key Players and the Path Forward
Tom Duff Gordon, VP of International Policy at Coinbase, is instrumental in developing UK crypto policy. His background, bridging traditional finance (TradFi) and Web3, positions him as a key liaison between the crypto industry and regulatory bodies.
Inglis told us that despite such concerns, he remains very positive about the UK’s potential. The survey of crypto and finance professionals found that half felt the UK had the potential to be a global crypto hub.
Only 9% of firms surveyed feel fully prepared for the incoming crypto regulatory regime, highlighting the need for greater clarity and support as the UK moves towards implementation. The UK is attempting to recalibrate their regulatory approach as the global crypto market is seeing a new boom. This renders it even more essential to create a simple, predictable, and environmentally-responsible regulatory framework.
