The United Kingdom has the potential to become a major player in the Web3 economy, according to cryptocurrency exchange Coinbase.
In an April 16 blog post, the exchange laid out a vision for the U.K. to be an “innovation hub” for the industry. Coinbase praised the progressive regulatory efforts taking place in the region and highlighted that its CEO, Brian Armstrong, would be speaking at a London fintech conference to provide nine recommendations on how the U.K. can establish itself as a Web3 hub.
The comments from Coinbase came at the same time as a Sky News report that the U.K. Treasury is set to revive the Asset Management Taskforce with a focus on developing crypto regulation in collaboration with the private sector. Coinbase welcomed this development and emphasized that it is working “seriously” in the U.K. and Europe.
Armstrong’s recommendations for the U.K. government include ensuring collaboration between the banking and fintech sectors, developing a cross-departmental strategy for tech innovation and economy digitization, and quickly establishing a regulatory framework for crypto.
Other recommendations include creating a plan to bring decentralized ID (DiD) to fruition, providing clarity on tax treatment for crypto assets, and developing a regulatory framework that promotes stablecoins.
Ahead of his speech, Armstrong revealed via Twitter that he met with the U.K.’s economic secretary and city minister, Andrew Griffith.
The Coinbase CEO raised concerns over the de-banking of some crypto firms in the U.K. and the negative implications of the 24-hour “cooling off” for investments in financial product promotions that came into effect under the “Financial Promotion regime” in February.