A Web3 Innovation Hub in the UK
Crypto exchange Coinbase has described the United Kingdom as a “web3 innovation hub” in a blog post following a meeting between CEO Brian Armstrong and Andrew Griffith, UK’s Economic Secretary, and City Minister. The post emphasized the importance of the UK and the rest of the European Union to Coinbase’s global strategy and outlined the company’s hopes for the future of decentralized finance (DeFi) in the region.
Coinbase has expressed its hope that banks will be willing to collaborate with FinTech firms to drive innovation in digital assets and that the UK will swiftly establish a blockchain-friendly regulatory framework that also safeguards investors.
Coinbase’s CEO, Brian Armstrong, is expected to provide more information on these plans during a discussion on April 18.
The UK’s Progress on Digital Assets
The UK has been exploring and developing a framework for digital assets, including central bank digital currencies (CBDCs) and other cryptocurrencies. Last week, the Bank of England’s Governor, Andrew Bailey, expressed his belief that such assets will play a critical role in the future monetary system.
Coinbase has already praised UK developments, particularly when selecting a location for its new offshore trading firm.
US Regulatory Pressure on Cryptocurrencies
Coinbase’s Chief Legal Officer, Paul Grewal, has previously expressed concerns about the US’s aggressive regulatory stance towards cryptocurrencies. At the first-ever hearing of the Subcommittee for Digital Assets, Grewal warned that the country’s innovation edge could be lost due to regulatory pressure. The concerns voiced by the cryptocurrency exchange grew more robust when it received a Wells notice stating that the SEC is contemplating taking enforcement action against it for offering unregistered securities.
Others have voiced similar concerns in the digital asset industry. Representative Tom Emmer previously called the SEC a “shakedown authority” towards cryptocurrencies, while Commissioner Hester Peirce warned that the agency’s actions could scare away innovators.
Industry Reaction to SEC Enforcement Actions
Bittrex, another crypto exchange, echoed the same concerns in a statement published on April 17, mere hours after being hit by an SEC enforcement action. Although there has yet to be a mass exodus from the US due to aggressive regulatory actions, major companies such as Bittrex and Nexo have already decided to leave the country.
