• The U.K. Treasury and the Financial Conduct Authority (FCA) opened a consultation process last week to develop a regulatory framework for cryptoassets.
• Brian Quintenz, Head of Policy for crypto venture firm a16z, posted a response to the consultation process.
• He applauded the initiative and praised the U.K.’s understanding of the crypto market at its early stage, as well as its approach to ensure similar regulatory outcomes for crypto without assuming that superficially related activities create the same legacy financial risks.
U.K Opens Consultation Process on Crypto Regulatory Framework
The United Kingdom Treasury and Financial Conduct Authority (FCA) recently announced their “Future Financial Services Regulatory Regime for Cryptoassets” and opened up a consultation process seeking input from key industry players on the proposal in order to ensure the right regulatory regime is put in place.
a16z Respond To Consultation Process
Brian Quintenz, Head of Policy for crypto venture firm a16z, replied to the consultation process with praise for the initiative taken by U.K authorities and their understanding of the early stages of development in this nascent industry. He noted that while other countries such as the U.S are using regulation by enforcement tactics against major players, such as Coinbase and Kraken, this approach ensures similar regulatory outcomes without automatically assuming all activities create similar risks – something which could encourage those who are considering relocating operations away from home countries due to unfavourable regulations elsewhere.
U.S Regulation By Enforcement Tactics Opposite To UK
In contrast to U.S regulators who have been taking legal actions against major players within the industry through “regulation by enforcement” tactics, Quintenz noted that it was important for regulators like those in the U.K to continue listening closely to those involved in this new space in order not only to be able to regulate effectively but also allow innovation within it’s borders too – something which has been seen already with recent investments made into British companies from abroad due largely due favourable regulations compared with other countries such as America who take an opposite stance when it comes regulating cryptocurrencies and other digital assets..
Crypto Markets Growing At An Increasing Pace & Complexity
Quintenz went on further noting how quickly these asset markets have developed over recent years with increasing pace and complexity – bringing both tremendous opportunities but also serious risks if left unchecked or unregulated correctly – making it even more important that countries like Britain get ahead of this curve when it comes regulating these assets correctly so they can reap maximum benefits while reducing risk exposure at same time too..
Overall then, whilst there will always remain debate over whether cryptocurrency regulation should be implemented or not given its decentralized nature compared with more traditional economies – what is clear is that any form of successful regulation must come about through proper dialogue between both sides rather than through heavy-handed enforcement approaches like seen elsewhere around world today..