Several prominent players in the cryptocurrency industry, including Polygon Labs, a16z, AFME, and DPF, have provided their responses to the UK’s proposed crypto asset regulatory framework. The Treasury’s call for “same risk, same regulatory outcome” received positive feedback, but there were varying interpretations of its meaning. The proposal also highlighted the importance of regulating activities rather than assets and differentiated between fiat-backed stablecoins and algorithmic stablecoins. Polygon Labs expressed a preference for an activity-based regulatory approach. Meanwhile, AFME recommended the creation of a global taxonomy of crypto assets to aid international regulation.
The territorial scope of the proposed crypto regulations, which applies to companies that offer services to UK nationals, was also identified as broader than those concerning traditional assets. The UK government will review these responses and engage in further consultations if specific rules are to be established.
