According to Cointelegraph, the UK has an opportunity to take advantage of Web3 businesses leaving the United States due to regulatory uncertainty, but to achieve this goal, the UK needs to follow its own regulatory path and simplify the requirements of cryptocurrencies to some extent. The conservative think tank Policy Exchange released a report on Web3 on October 2, which put forward 10 recommendations for the UK government to refer to improve Web3 regulation. One of the recommendations in the report is to limit the liability of individuals who hold tokens in decentralized autonomous organizations (DAOs). The report also recommends that the Financial Conduct Authority (FCA), the UK's main financial regulator, relax its current Know Your Customer (KYC) policy to allow the use of "alternative and innovative technologies" such as digital identity and blockchain analysis tools. Experts say that the UK should avoid undermining self-hosted wallets and regulate proof-of-stake services as financial services. Other recommendations include allowing private stablecoin issuers to deposit stablecoin reserves at the Bank of England, creating a "tax wrapper" for cryptocurrency exchanges, and setting up a new sandbox under the science, innovation and technology department. Recently, British regulators have taken a stricter approach to the digital asset industry. The UK Treasury is considering a ban on all cold calls promoting cryptocurrency investments, and the FCA has warned local cryptocurrency businesses to comply with its marketing rules or face consequences.