{"id":78187,"date":"2023-05-02T18:58:55","date_gmt":"2023-05-02T15:58:55","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=78187"},"modified":"2025-09-11T03:35:22","modified_gmt":"2025-09-11T00:35:22","slug":"a16z-urges-britain-to-fine-tune-crypto-regulation","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/a16z-urges-britain-to-fine-tune-crypto-regulation\/","title":{"rendered":"a16z urges Britain to fine-tune crypto regulation"},"content":{"rendered":"<p>\u201cA universal approach\u201d in developing a regulatory framework for digital assets will not work; many nuances must be considered. This conclusion is contained in Andreessen Horowitz (a16z) in its response to the UK government&apos;s consultative report.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">1\/ <a href=\\\"https:\/\/twitter.com\/a16zcrypto?ref_src=twsrc%5Etfw\\\">@a16zcrypto<\/a> submitted our response to the UK <a href=\\\"https:\/\/twitter.com\/hmtreasury?ref_src=twsrc%5Etfw\\\">@HMTreasury<\/a> \u201cFuture Financial Services Regulatory Regime for Cryptoassets\u201d consultation. We enthusiastically embrace the UK\u2019s approach for a \u201cproportionate and focused, agile and flexible,\u201d regime. ?. . <a href=\\\"https:\/\/t.co\/rT85Xfd8so\\\">https:\/\/t.co\/rT85Xfd8so<\/a><\/p>\n<p>\u2014 Brian Quintenz (@BrianQuintenz) <a href=\\\"https:\/\/twitter.com\/BrianQuintenz\/status\/1653023839172050945?ref_src=twsrc%5Etfw\\\">May 1, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>In early February, the country\u2019s Ministry of Finance<a href=\"https:\/\/forklog.com\/en\/news\/uk-treasury-unveils-plans-to-regulate-crypto-exchanges\"> published<\/a> a document on preparing the introduction of oversight over cryptocurrency exchanges and lending platforms to ensure they adhere to \u201cfair and reliable standards.\u201d<\/p>\n<p>The ministry aims to mitigate the most serious volatility risks and structural vulnerabilities that affect some business models in the sector, bringing them in line with <span data-descr=\\\"traditional finance\\\" class=\\\"old_tooltip\\\">TradFi<\/span>.<\/p>\n<p>Under the provisions, crypto exchanges must specify detailed requirements for the content of asset admission documents and disclosures.<\/p>\n<p>The measures also envisage tighter rules for financial intermediaries and custodians.<\/p>\n<p>The agency will solicit views on improving market integrity and consumer protection.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p><em>\u201cThe one-size-fits-all approach to regulating crypto asset transactions would not align with the Finance Ministry\u2019s core principle of \u2018same risk, same oversight\u2019,\u201d<\/em> \u2014 noted by a16z.<\/p>\n<\/blockquote>\n<p>The firm\u2019s lawyers proposed unifying the understanding of the decentralization principle in <a href=\"https:\/\/forklog.com\/en\/news\/what-is-web3\">Web3<\/a>.<\/p>\n<p>According to a16z, the regulatory framework should include \u201cprinciples-based analysis,\u201d which considers whether the very structure of the platform or protocol has actually reduced the risks. In other words, rules should not unduly hinder decentralization of a project.<\/p>\n<p>The firm urged regulators not to base regulation on the US experience.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p><em>\u201cThe Washington approach is not to be considered. Britain can successfully implement a principles-based approach to decentralization that promotes broad adoption of crypto assets to spur Web3 innovation, while giving priority to consumer protection,\u201d<\/em> \u2014 said by a16z.<\/p>\n<\/blockquote>\n<p>Representatives of the firm called for regulating DeFi apps and businesses, not protocols or software.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p><em>\u201cDeFi may present unique risks for which the existing regulatory framework is ill-suited. For this reason, a tailored regulatory framework is optimal\u2026 enterprises can understand and comply with jurisdictional rules. Globally available software cannot do this,\u201d<\/em> \u2014 the specialists concluded.<\/p>\n<\/blockquote>\n<p>Deputy Governor of the Bank of England John Cunliffe<a href=\"https:\/\/forklog.com\/en\/news\/bank-of-england-calls-for-regulating-cryptocurrencies-in-line-with-traditional-markets\"> proposed<\/a> regulating digital assets in the same way as traditional finance. He also noted that decentralized protocols <a href=\"https:\/\/forklog.com\/en\/news\/bank-of-england-flags-risks-in-the-defi-sector\">do not yet provide<\/a> an effective way to manage risks.<\/p>\n<p>In December 2022, Cunliffe <a href=\"https:\/\/forklog.com\/en\/news\/bank-of-england-calls-for-regulation-of-cryptocurrencies-before-problems-arise\">called for<\/a> creating a regulatory framework for cryptocurrencies before systemic problems arise.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A universal approach in developing a regulatory framework for digital assets will not work; many nuances must be considered. This conclusion is contained in Andreessen Horowitz (a16z) in its response to the UK government\u2019s consultative report.<\/p>\n","protected":false},"author":1,"featured_media":78188,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[848,36,810],"class_list":["post-78187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-andreessen-horowitz","tag-regulation","tag-united-kingdom"],"aioseo_notices":[],"amp_enabled":true,"views":"24","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=78187"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78187\/revisions"}],"predecessor-version":[{"id":78189,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/78187\/revisions\/78189"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/78188"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=78187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=78187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=78187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}