The UK's strict regulations on cryptocurrencies have negatively affected crypto-related businesses in the country.

The US, in contrast, is fostering institutional adoption and allowing entities to back bitcoin products.

The UK's Financial Conduct Authority categorized cryptocurrencies as 'restricted mass market investments', against industry advice.

These regulations have limited options for consumers and businesses, leading some to sell assets or lie on applications.

The UK's regulations are in stark contrast to progressive steps taken by other major markets, such as the US approving a bitcoin spot ETF.

The regulations have been criticized for obstructing access and innovation and discouraging startups from establishing in the UK.

Unintended consequences of the regulations include loss of banking facilities, lessened investment and employment opportunities, and a decrease in innovation.