The U.K. could attract Web3 firms leaving the U.S. due to regulatory uncertainty by following its own regulatory path, according to a report by conservative think tank Policy Exchange. The report suggests 10 proposals for the U.K. government to improve Web3 regulation, including limiting the liabilities of individuals holding tokens in a decentralized autonomous organization (DAO) and allowing the Financial Conduct Authority (FCA) to loosen its Know Your Customer approach. Other proposals include not undermining self-hosted wallets, allowing private stablecoin issuers to place reserves in the Bank of England, and creating a new sandbox under the Department for Science, Innovation and Technology.