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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 call on the UK’s Financial Conduct Authority (FCA) to reconsider its approach to crypto regulation. The coalition is urging a more nuanced regulatory framework that distinguishes between custodial and non-custodial services.
In their joint statement, the organizations emphasize concerns regarding the FCA’s current proposals for a “one-size-fits-all” regulatory environment. This approach, they argue, could stifle innovation and drive it offshore if not addressed.
The IOTA Foundation is particularly worried about the potential risks associated with a blanket approach to regulation. They believe that such an approach would lead to compliance challenges for open-source, permissionless protocols, ultimately stifling the development of decentralized finance (DeFi) infrastructure. This could, in turn, push users towards riskier offshore alternatives.
It’s crucial to note that most consumer harm in the crypto sector has stemmed from centralized custodians with opaque practices rather than transparent DeFi protocols.
Source: Blockchain.News
