UK Slams Crypto Wild West With New Rules—While US Regulators Keep Playing Sheriff
London just fired the next shot in the global crypto regulation arms race. The UK’s Financial Conduct Authority (FCA) unveiled sweeping new rules for digital assets—complete with KYC mandates and trading restrictions that’d make a Wall Street compliance officer blush.
How does it stack up against the US? America’s ’regulation-by-enforcement’ approach looks downright chaotic in comparison. The SEC keeps slapping lawsuits like parking tickets while Congress debates bills that’ll probably pass around the same time Bitcoin hits $1 million.
One thing’s clear: The Brits are done waiting for crypto to ’self-regulate.’ Now if only their Treasury could figure out how to tax DeFi without breaking the blockchain...
Crypto Regulations are Changing the UK
Friendlier crypto regulations are sweeping the world, with the US leading bold new changes. The SEC’s new Crypto Task Force is conducting direct dialogues with business leaders, and a comprehensive stablecoin framework is a top priority.
In this environment, the UK’s own plans to reform crypto regulation bear similarities and differences:
“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,” Rachel Reeves, Chancellor of the Exchequer, claimed.
The Treasury publicized several documents proposing some of the changes that may happen in UK crypto regulation. These changes are heavily influenced by US cooperation; Reeves personally met with Treasury Secretary Scott Bessent.
They discussed several topics, including a cross-border regulatory sandbox, which the industry has been supporting.
She also announced an upcoming UK – US Financial Regulatory Working Group to further coordinate policy goals. However, the Treasury’s messaging on UK crypto regulation has a decided focus on fighting bad actors.
US regulators, on the other hand, have repeatedly expressed a desire to end crypto crackdowns in every possible area.
In other words, the British Treasury seems to support pro-industry development without a laissez-faire attitude, which has prompted some community skepticism.
In the past, UK crypto regulations have been accused of overreach, prompting some firms to leave the nation. This reputation may hamper serious Web3 growth.
“Sad because it’s actually true. The UK can barely operate the basics, yet they want to lead the digital era? Delusional!” claimed The Crypto Professor in response to derisive social media statements about British crypto reform.
Still, it may be too early to count Britain out just yet. The government will publish an actionable plan to update crypto regulation in the UK by July, giving it plenty of time to set policy.
A lot could change in that time, especially if it’s coordinating with counterparts in the US. At the moment, it’s too soon to predict the outcome.
