Coinbase, the popular cryptocurrency exchange, is urging the US to embrace crypto innovation and regulation to become a global leader in the industry. While Coinbase appreciates the international market potential for cryptocurrencies, it believes that the US should take a similar approach and avoid a regulation-by-enforcement strategy, which seems to be hindering crypto development.
The UK, on the other hand, has recognized the importance of crypto and digital assets for the future of finance and has made efforts to consult industry leaders to develop effective regulations. Chancellor Rishi Sunak has set the goal of making the UK a global crypto hub, and the government has reiterated its commitment to this vision at the Conservative Party Conference.
A new report by UK think-tank Policy Exchange highlights the potential of blockchain technology as the foundation for the next wave of internet development, known as Web3. The report emphasizes that blockchain technology can be harnessed across various economic sectors, not just limited to financial services. It offers recommendations for the UK government to capitalize on the innovative potential of this technology.
The report’s findings are particularly significant in light of the increasing regulatory uncertainty in the US. Major firms, including Coinbase, a16z, and Fidelity, have chosen to establish operations in the UK due to its favorable regulatory environment. On the other hand, companies like Revolut and Gamestop, whose focus is not solely on Web3, have decided to shut down their blockchain applications in the US to avoid regulatory backlash.
The Bank of England has been at the forefront of recognizing the potential of blockchain technology to improve payments. It acknowledges the benefits of increased efficiency, reduced costs, and enhanced programmability that come with blockchain integration.
According to Coinbase’s analysis, 83% of major global financial hubs are offering clearer regulatory guidelines on cryptocurrencies. The UK is among these hubs and has already witnessed significant success in attracting Web3 startups due to its forward-thinking approach.
In conclusion, Coinbase is urging the US to embrace crypto innovation and regulation to become a global leader in the industry. Meanwhile, the UK is positioning itself as a crypto hub, recognizing and harnessing the potential of blockchain technology across various sectors. With increasing regulatory clarity and a favorable environment for crypto startups, the UK is attracting significant attention from major players in the industry.
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