I wouldn't see UK as being hypocrite as regards the regulation of cryptocurrency which is allowed and has been approved. They are trying to make the profits that banks would have lost due to DEX emergence. Perhaps, if they notice the correspondence of citizens using more of cryptocurrencies, the taxes would be increased, stricter rules would be set.

It should be considered more or less a test to see usage and acceptance from the citizens. It is to also keep an eye on possible criminal minds and transactions too.
What US is doing, is more hypocritical because their motive is skewed even as we know that there are more crypto users there.