Crypto companies ask UK regulators not to follow US

In the eyes of some US lawmakers and businesses, the US is stifling innovation with its sometimes confusing and often heavy-handed approach to regulating the crypto space.

But Web3 companies hope that the UK will not go down the same path. Today, a16z, the crypto-focused division of VC giant Andreessen Horowitz, called on the UK Treasury to take a more “nuanced” approach to regulation, adding that “the US approach is not one that the UK should consider adopting. “

UK in February presented its first rules to regulate crypto. In a consultation document, the Treasury said it wanted to regulate crypto exchanges like other traditional financial venues.

Head of policy at a16z Brian Quintenz said on Twitter on Monday that they “enthusiastically embrace the UK’s approach for a ‘proportional and focused, agile and flexible’ regime.”

He added that the investment firm looked forward to continuing its work with the Treasury to “establish world-class rules that will protect consumers and allow this innovation to flourish.”

Just last month, a16z warned that the US was losing its edge in the digital assets area. The British government has so it wants the country to become a “global technology hub for cryptoassets.”

a16z wasn’t the only one to speak out about UK regulation today. Polygon Labs too answered saying it was “incredibly encouraging” to see the UK taking steps to regulate the industry. Polygon Labs Chief Policy Officer Rebecca Rettig added on Twitter that the UK consultation was “excellent.”

Polygon Labs, the group of companies behind the Polygon blockchain network and the 10th largest cryptocurrency MATIC, made proposals to the Treasury.

In particular, it suggested that “non-backed cryptoassets” – cryptocurrencies that have no specific backing, such as Bitcoin – should be “treated differently” from coins and tokens that have a team working behind the technology, or have their value tied to other assets.

Coinbase CEO Brian Armstrong also last month so that the UK “moved quickly on sensible crypto regulation to both drive economic growth and consumer protection.” America’s largest crypto exchange has so it is actively looking to rapidly expand abroad.

Following the collapse of mega-exchange FTX in November, US regulators – particularly the Securities and Exchange Commission – have been aggressively going after major crypto brands to encourage compliance.

Under SEC Chairman Gary Gensler, the SEC has gone after the US crypto exchanges Kraken, Bittrex and Coinbase for allegedly selling unregistered securities.

But not everyone is happy with the crackdown: Republican politicians believe that regulators in particular are forcing technology offshore. If that is the case, the UK seems to welcome in any crypto companies that may be displaced.