a16z Urges UK Government to Take More Nuanced Approach to Crypto Regulation

A16z crypto has urged the UK to take a “more nuanced approach” to the regulation of digital assets as the country considers a new framework for both trading and lending.

The venture capital firm believes that regulatory frameworks should include a “principles-based analysis” that takes into account whether the structure of a given platform or protocol already mitigates potential risks.

Furthermore, it argued that regulations should not impede a project from decentralizing.

Brian Quintenz, a16z crypto policy head, expressed his approval of the UK’s “proportionate and focused, agile and flexible” approach to regulation, which looks to ensure similar regulatory outcomes for crypto and avoids automatically assuming that related activities create the same financial risks.