Crypto is global. Even as America moves closer to legislation on stablecoins and market structure, the rest of the world is also charging ahead. Embracing DeFi is not optional; it’s a prerequisite for remaining competitive in the future of global finance.

The UK has, over multiple administrations, expressed its ambition to be a global hub for digital asset innovation. This dream will manifest or dissipate depending on how the Financial Conduct Authority (FCA) approaches decentralized finance (DeFi). Last week, Paradigm submitted a response on the FCA’s Discussion Paper 25/1 on regulating cryptoasset activities, highlighting crucial steps to ensure DeFi can flourish in the United Kingdom.

We believe in the immense potential for DeFi to…