Polygon Labs Responds to UK’s Crypto Asset Regulatory Consultation

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Polygon Labs Responds to UK’s Crypto Asset Regulatory Consultation

Polygon responds to crypto consultation – The U.K.’s HM Treasury put out a consultation invitation in February 2023 and a request for evidence on proposed future regulatory rules relating to crypto assets.

This consultation’s approach shows the seriousness of the UK government’s aim to become a global hub for crypto assets technology. Different players in the crypto industry have responded to the call.

The proposal is indeed broad, and thoughtful, and points to the need to set up healthy regulations that need to be implemented in the general crypto industry. All this is a result of efforts to study and understand the crypto ecosystem. Consequently, it is also out of the UK government’s engagement with the crypto industry.

In its first phase, the consultation will focus on “custodial crypto-asset intermediaries (CeFi)” – centralized finance as well as token providers. This is more like the recently approved EU’s approach to dealing with MiCA (Markets in Crypto assets) regulations.

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U.K.’s call for evidence is reaching out to experts in the industry for suggestions relating to blockchain technology which includes decentralized finance, mining, validation, and sustainability.

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Polygon Labs responds

The industry giants took a different approach to their response. It focused more on decentralized finance (DeFi), NFTs, as well as other forms of decentralized tokens including validation and sustainability. It offered extensive information in relation to the listed technologies.

In a blog post, Polygon Labs expressed their delight in global regulators like HM Treasury paying attention to creating crypto asset regulations that will play a major role in its future development. These rules will give crypto asset technology the required push and safeguard consumers’ interests, “preserving market integrity” and fighting illegal finance.

Read their extensive response HERE.

Responses from other players

Other players in the industry that released their responses include Binance, and the Association for Financial Markets in Europe (AFME). In Binance’s response, it highlighted that a  “disproportionate regulation” will bring about financial instability issues and push consumers to seek out other markets.

Similarly, AFME noted in its response the importance of a global classification of crypto assets for effective international regulations. Meanwhile, the U.K. government will respond to these various inputs from industry players and engage in further consultations.

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