Why Bitcoin Shouldn't Be Regulated Like Crypto

Regulators in many jurisdictions still treat bitcoin and other cryptoassets as a single category. Bitcoin has operated for more than 15 years without an issuer, central governance or a discretionary monetary authority, while many other tokens depend on identifiable development teams and ongoing issuance decisions. Rules built around accountable issuers and licensed intermediaries do not always fit a permissionless network.

The article uses crypto lending as an example, where consumer credit rules designed around missed repayments sit awkwardly with bitcoin-backed loans whose main risk is collateral liquidation. It notes consultation responses arguing that blanket restrictions push consumers towards offshore platforms with fewer safeguards, and includes comments from Su Carpenter of CryptoUK alongside industry perspectives on how the rules apply in practice. It argues for more precise classification rather than less regulation.