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IOTA Foundation Advocates for Tailored UK Crypto Regulations
The IOTA Foundation has joined forces with the International Association for Trusted Blockchain Applications (INATBA) and the Cardano Foundation to urge the Financial Conduct Authority (FCA) in the United Kingdom to reconsider its approach to crypto regulation. The coalition emphasizes that a one-size-fits-all regulatory framework is not suitable for the diverse range of crypto services offered in the UK market.
In their joint statement, the organizations express concerns over the potential stifling effect of such rigid regulations on innovation and potentially driving it offshore. They argue that centralized custodial services, which hold user funds, require a different regulatory approach compared to non-custodial services that operate through decentralized protocols with built-in safeguards.
The IOTA Foundation highlights the need for a tiered regulatory framework that takes into account the unique characteristics of decentralized finance (DeFi) and open-source permissionless protocols. The organization warns that a blanket regulatory approach could lead to compliance challenges, hinder the development of DeFi infrastructure, and push users towards riskier offshore alternatives.
The coalition believes that the UK has the opportunity to establish itself as a leader in forward-thinking crypto regulation. By adopting a collaborative and iterative guidance process, the UK can protect consumers while empowering financial innovation.
Source: Blockchain.News
