Coinbase has rolled out its “Stand With Crypto” policy recommendations ahead of the upcoming election in the United Kingdom (UK). This strategic initiative underscores Coinbase’s commitment to advocating for a more robust and forward-thinking crypto regulatory framework in the United Kingdom.
In a self described manifesto, Coinbase said the next government should focus on promoting Web3 in the UK and establish a hub for growth and development.
We believe the next Government should take meaningful steps to position the UK as a global hub of digital assets, tokenization and fintech.
The policy matters raised in this document are worthy of Australia taking note, covering several critical recommendations aimed at fostering a more conducive environment for the crypto industry. These include:
- Global Hub Promotion: Establish the UK as a leader in Web3 and tokenisation, highlighting openness for fintech and crypto businesses through a government-industry task force.
- Comprehensive Regulatory Framework: Implement clear regulations for crypto assets, ensuring consumer protection and industry standards. Legislate fiat-backed stablecoins to encourage competition.
- Staking Clarity: Introduce legislation recognising staking as a regulated activity, preserving retail participation vital for proof-of-stake blockchains.
- Promote Decentralisation Benefits: Conduct detailed policy work on the unique advantages of decentralisation, impacting sectors like education, healthcare, and energy.
- Blockchain Strategy: Develop a cross-government strategy led by the Department for Science, Innovation and Technology (DSIT) to harness blockchain technology for efficiency across public services.
- Tokenisation Strategy: Overturn the prohibition on retail access to crypto Exchange Traded Notes (ETNs) and promote tokenisation innovation through sandbox environments.
- Legal Framework Update: Update UK laws based on Law Commission recommendations to ensure certainty on digital property rights and establish a crypto collateral regime.
Coinbase’s move to release these recommendations just before the UK election appears a calculated effort to inform and influence policymakers and try to shape the future regulatory landscape in the UK. The company is leveraging its position as a leading crypto exchange to advocate for a regulatory framework that promotes growth, innovation, and consumer protection in the digital asset space.
As the UK gears up for its next election, Coinbase’s “Stand With Crypto” policy highlights the growing importance of regulatory clarity and supportive policies in the crypto industry. By taking a proactive stance, Coinbase aims to ensure that the UK remains at the forefront of the global crypto market, fostering an environment that encourages innovation while protecting consumers. Australian policymakers, currently drafting licensing laws, could learn from these principles as we see our framework emerging, if they too wish Australia to benefit from this foundational technology.
Michael Bacina – Partner, Piper Alderman
Luke Misthos – Lawyer, Piper Alderman