- Coinbase Chief Executive Officer Brian Armstrong has lauded the U.K.’s crypto regulatory approach.
- The crypto executive met with the U.K.’s Economic Secretary to the Treasury and City Minister on April 17.
- The U.K.’s crypto rules could be ready in the next 12 months.
Cryptocurrency regulation has been a raging topic in recent years as governments worldwide realize that the industry is here to stay. Regulating the developing industry is no mean feat however, and will require a balancing act to ensure consumer protection, while also creating and enabling an environment that nurtures innovation.
Nonetheless, one of the industry’s top bosses believes that the United Kingdom is well on its way to achieving exactly that.
“The U.K. Is Moving Fast on Sensible Crypto Regulation”
In a series of tweets on April 17, Coinbase Chief Executive Officer Brian Armstrong heaped praise on the U.K. for working swiftly towards “sensible” rules for the nascent market, which he tipped to foster growth and protect consumers in the region. Armstrong also hinted at plans to grow his exchange’s U.K. investments.
The Coinbase chief made the remarks following a meeting with the U.K.’s Economic Secretary to the Treasury and City Minister, Andrew Griffith. He revealed that, during the meeting, they discussed the hurdles currently facing the industry in the country, such as resistance from banks and pain points in the Financial Conduct Authorities Financial Promotion rule.
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Armstrong is in the U.K. for its fintech week. He will be discussing Coinbase’s vision for the U.K.’s crypto industry with former Chancellor of the Exchequer George Osborne on April 18.
The U.K. Dream
U.K. Prime Minister Rishi Sunak crystallized the country’s plan to become a crypto hub just over a year ago, while he was still Chancellor of the Exchequer. In February 2023, under Sunak’s administration, His Majesty’s Treasury announced a three-month-long consultation with blockchain firms on crypto regulations, slated to end on April 30.
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As disclosed by HM Treasury, the consultation geared towards creating a crypto regulatory framework is expected to cover exchanges, custody, and crypto lending. Griffith recently told CNBC that the U.K. government expects to roll out its guidelines for the crypto industry in the next 12 months, reiterating plans to become a global crypto hub.
On the Flipside
- Coinbase faces regulatory uncertainty at home and has been served a Wells notice from the U.S. Securities and Exchange Commission.
- The U.S. SEC chair Gary Gensler maintains that decades-old securities laws apply to crypto and that new rules are unnecessary.
- Countries like the United Arab Emirates are also pushing to become global crypto centers.
- The European Union is also close to approving a regulatory framework for crypto.
Why You Should Care
Coinbase is the second-largest crypto exchange by 24-hour spot trading volume. The comments from its CEO on U.K. crypto regulations contrast recent concerns surrounding the state of U.S. crypto regulations, indicating industry sentiment and potential for a focus shift from crypto firms.
To learn more about proposed crypto regulations, read this:
Will the U.K. Be the First Country to Successfully Regulate Cryptoassets?
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