Financial institute Coinbase under fire in the UK: A viral video highlights shortcomings in the traditional financial system, accentuating the growing influence of cryptocurrency
In recent times, the United Kingdom has been grappling with the complexities of crypto regulation, a challenge that has been highlighted by a series of reports and videos.
A recent report by Fair4All Finance reveals a concerning trend in the UK's financial landscape. The number of high-debt individuals with average incomes has seen a 59% increase, financial distress among younger adults has spiked by 45%, the number of people relying on food banks has increased by 15%, and the number of people surviving purely on credit has risen by 12%. These statistics underscore the growing financial vulnerability in the UK, with 44% of adults (20.3 million people) now considered financially vulnerable, marking a 16% increase since 2022. The hardest hit include zero-hour workers, families without savings, and individuals juggling multiple debts.
Amidst this backdrop, the UK's approach to crypto regulation has come under scrutiny. Crypto platforms, such as Coinbase, are seizing the opportunity to expand their customer base and challenge the status quo. Coinbase's video, titled "Everything is Fine," is a satirical critique of the UK's financial system, using irony to highlight issues such as rising prices, stagnant wages, and the financial vulnerability of UK citizens.
The video, accompanied by a provocative caption, emphasizes the need for change in the UK's financial system. Coinbase reiterates the fundamental crypto narrative: decentralization, transparency, and financial access. The video's message is a call to action, urging the UK to adapt and update its financial system to meet the needs of its citizens.
The UK's lack of clear direction on blockchain technologies is causing what the Official Monetary and Financial Institutions Forum (OMFIF) has termed "policy procrastination." The UK, once considered a potential "gold standard" for digital asset regulation, now appears paralyzed by indecision. As a result, the UK is lagging behind both the EU and the US in crypto regulation.
The UK's next move regarding crypto regulation will make or break its position in the digital asset market. The UK is currently implementing a phased, evolving crypto regulatory framework, with legislation expected by early 2025 and full core rules operational by the end of 2026. This framework focuses on bringing cryptoasset activities under regulation, including custody, trading platforms, lending, and DeFi, with a strong emphasis on innovation and investor protections. The UK also seeks regulatory alignment with the US, including initiatives like a transatlantic digital securities sandbox, reflecting a collaborative approach rather than rigid upfront rules. Retail investors will be allowed regulated access to crypto exchange-traded notes (ETNs) starting October 2025 under strict FCA-approved platforms.
In comparison, the EU has adopted a more rigid and comprehensive regulatory model through the Markets in Crypto-Assets (MiCA) framework, effective from mid-2024. The EU's approach is generally seen as stricter and more prescriptive but aims to create uniformity across member states and foster a safe, transparent market.
The US regulatory approach remains somewhat fragmented but is showing signs of increasing clarity and permissiveness. The US SEC formed a Crypto Task Force in early 2025 to develop a clearer framework, aiming to balance consumer protection with stronger leadership in digital finance. The US regulatory style involves strong securities law enforcement combined with openness to innovation, though regulatory jurisdictional overlaps sometimes create complexity.
In summary, the UK's approach to crypto regulation sits between the EU's strict regulatory model and the US's evolving, enforcement-heavy but innovation-friendly system, aiming for adaptability and transatlantic cooperation. As the UK moves forward with its phased regulatory framework, it will be interesting to see how it balances regulation with innovation and addresses the growing financial vulnerability of its citizens.
- Coinbase, a crypto platform, has released a satirical video criticizing the UK's financial system, using humor to highlight concerns such as financial vulnerability and rising prices.
- The UK is in the process of creating a phased, evolving regulatory framework for crypto assets, focusing on areas like custody, trading platforms, lending, and DeFi, with a strong emphasis on innovation and investor protections.
- The EU has adopted a more rigid regulatory model for crypto assets, aiming to create uniformity across member states and foster a safe, transparent market, as stipulated by the Markets in Crypto-Assets (MiCA) framework, effective from mid-2024.
- Retail investors in the UK will be allowed regulated access to cryptocurrency exchange-traded notes (ETNs) starting October 2025, under strict FCA-approved platforms.
- The US is showing signs of increasing clarity and permissiveness in its crypto regulation, with the SEC forming a Crypto Task Force in early 2025 to develop a clearer framework, balancing consumer protection with stronger leadership in digital finance.
