Consensys: The "harsh" regulation by the UK's FCA may cause the country to lose its status as a cryptocurrency hub

ChainCatcher news, according to The Block, at this week's Zebu Live conference in London, the UK's cryptocurrency regulatory environment sparked heated discussions, with industry dissatisfaction over the lack of a clear framework and slow regulatory progress.

Consensys senior legal advisor Bill Hughes spoke passionately, expressing concerns that the UK's Financial Conduct Authority (FCA) would still "take a heavy-handed approach" to cryptocurrency regulation, which he believes has caused the UK to lose its status as a cryptocurrency hub, allowing the US to take the lead. He argued that treating all cryptocurrencies as financial instruments and applying all rules would severely hinder the UK's competitiveness.

He pointed out that there are significant differences between the UK and the US in cryptocurrency regulation; the US aims to provide space for the development of blockchain technology, while the UK focuses on risks and uncertainties. He emphasized that policies supporting innovation are the wise choice.

When asked what framework would best support blockchain innovation in the UK, he cited the US as an example, noting that it recently passed federal stablecoin legislation and is also making efforts regarding market structure.