What Lies Ahead For UK Blockchain Startups Post Brexit?

By Raghav Sawhney

BTC Wires: With Britain working out the finer details of leaving the European Union, the futures of several industries have been become subject to momentous transformations, some for the better, some for worse. It seems right now that the crypto industry might actually be looking at a brighter future than most other industries with the official exit from EU being only a matter of time. Danial Daychopan, the CEO of Britain-based crypto company Plutus has suggested that after Brexit, cryptocurrencies might be able to enjoy their time in the sun as they have several pros that trump the usual fiat currencies. Since the Pound and Euro are largely interdependent and also based on other currencies, the divorce from the Union might mean that Britain would have to look for a decentralized alternative, for which crypto is more than just suitable. Besides, since the Brexit negotiations have been going on for a while now without any concrete plan of action being made clear, some commentators have begun to apprehend a period of instability while the parties at the negotiation table try to pick up the pieces, or rather take them apart, before the deadline arrives next year.

Daychopan is also convinced that the dwindling faith in the Government might actually be an advantage for digital currencies, which, unlike fiat currencies, are not promissory notes issued by the government. He stated that digital economies are bound to prosper when traditional economies fail and that when such a time does arrive for Britain, as he believes it will, cryptocurrencies will become a major force to reckon with, and not just assets to invest in.

However, unless the changes are actually implemented, it is hardly clear what the actual effects will be, be it in UK or in EU overall. The EU members, including UK and excluding just 6 six states have all signed the EU Blockchain Partnership to allow for exchange of knowhow and expertise so that it becomes possible to launch blockchain-run applications throughout the EU across the single digital market.

The EU has expressed its desire to have clearcut regulations for crypto at both G20 and European levels and would ideally want to monitor the industry from Brussels, which naturally makes things a little more complicated for the United Kingdom. However the commentators in the EU Blockchain Observatory Forum noted that the country has already made substantial benefits from being a part of the EU fintech market, which has a total valuation of $6 billion.

A Member of European Parliament, Kay Swinburne, has argued that UK does not necessarily need the aid of bodies like the EU Blockchain Observatory Forum in order to move forward in terms of its fintech progress. Given that the country now has a new crypto center called Gibraltar, with an advanced innovation ecosystem for both blockchain and cryptocurrencies, the UK should be able to handle the effects of the withdrawal on its fintech industries well enough.

While the UK gears up for the final exit from the Union, it is reportedly making an attempt to come up with its own set of crypto regulations by 2019. The EU has however taken measures by passing a blockchain resolution so that Europe continues to be global centre of fintech even after the separation from UK.