UK Report Proposes Regulatory Changes to Encourage Web3 Innovation
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UK think tank Policy Exchange published a report with 10 proposals to improve Web3 regulation in the country. One suggestion is to limit liability for DAO token holders.
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The report advises the FCA to loosen its KYC requirements and allow innovative identity techniques like blockchain analytics.
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It recommends avoiding undermining self-hosted wallets and regulating proof-of-stake as a financial service.
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Other proposals include allowing private stablecoin issuers to place reserves in the Bank of England and creating a new regulatory sandbox.
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UK regulators recently have taken a more stringent approach to crypto, considering banning cold calls and warning businesses to follow marketing rules.