The latest news report showed that the Coinbase crypto exchange plans to shift its business focus from the US to the UK. The main reason is the extreme and harsh crypto regulations that litter American territory compared to the relatively crypto-friendly laws in the UK.
According to the report, the CEO of Coinbase, Brian Armstrong, stated that the United States is facing regulatory complications, which is terrible for the crypto business. However, he praised the United Kingdom for closing down on creating sensible crypto regulations.
Nonetheless, the CEO pointed out that even though the UK is more crypto-friendly, it has downsides. One of which he said was the poor fiat conversion rate that plagues the country.
Coinbase Praised UK For Adopting The Web3 Development
According to Armstrong, the UK was one of the regions that experienced massive crypto market growth over time. He added that enforcing the proposed Markets in Crypto Assets (MiCA) in European countries would create a new licensing protocol.
The CEO expressed joy by offering his continuous investment in the UK market. However, he stated that the country needs to implement reasonable fraud control. He added that some banks do not allow investors to pay crypto firms with fiat currency, a terrible act.
The Coinbase chief opined that the country’s finance regulators need more education and cooperation. However, he believed the UK was taking a bold step into the digital economy as it gradually revolutionized its views on money.
According to Armstrong, about 22% of U.K. adults are holding crypto assets. Furthermore, he believed that in the next 12 months, about 28% are possibly going to trade or have crypto, meaning demand is increasing.
Coinbase Gave Suggestion For UK Crypto Regulation Framework
Meanwhile, Coinbase exchange recently listed nine suggestions it wants the UK regulators to consider while creating their crypto regulations. The firm claimed that if its proposals were implemented, it would propel the country to a regional leadership level.
Part of the proposal suggested that the Financial tech and Banks work hand in hand to boost crypto development. It indicated that the bank should be risk-sensitive in its approach toward innovation.
The exchange urges the government to put blockchain and Web3 at the center of the cross-departmental plan that relies on the digitalization wave.
Furthermore, the exchange suggested that the regulators should create a balance between financial inclusion, investor protection, and industry investment. Coinbase suggested that disclosure and education techniques should replace the 24hrs ‘cooling off’ time allowed before crypto transactions.
In addition, the firm called for a regulatory framework that backs stablecoins by leveraging their utility case to build a sandbox for digital development. It also stated that the regulators should create rules that encourage tech developments.
Armstrong urged them to make laws that clearly define digital assets rights and cryptocurrency collateral governance. In combination, Coinbase suggested that the authority should comprehensively state how UK tax regulation would treat digital assets the same way it treats traditional finance systems.
Additionally, the exchange recommends decentralized identification systems should be used to solve identity issues across different industries. Lastly, Coibase called for rules with suitable traditional finance protocols with the same risk and regulatory outcome.