The leaders of the cryptocurrency and the fintech say that Great Britain has become a place that is not very welcoming for their business.
It is according to a report Wednesday, April 30, by CNBC, citing interviews with industry leaders who say that the United Kingdom risks losing businesses because of other technological centers if it cannot solve regulatory and financing problems.
Jaidev Janardana, CEO of the British Digital Bank Zopa, told Financial News Network that the United Kingdom was, a decade ago, “the first plan in terms of promoting competitiveness and innovation”, but is now more concerned with “priority to security and solidity” to the detriment of growth.
“If I look at the speed of innovation, I think the United States is ahead – although it has its own challenges. But watch Singapore, Hong Kong – again, you see a much faster innovation,” said Janardana. “I think we are still ahead of the EU, but we cannot remain complacent with it.”
The report notes that the United Kingdom has a robust fintech sector, with companies like Revolut and Monzo in the running to challenge traditional banks. Industry observers say that these companies have succeeded in part because of the pro-innovation rules that allowed technological startups to more easily obtain banking and electronic service licenses.
However, crypto companies say they are frustrated that their own industry did not appreciate the same rate of progress, added CNBC.
“Other jurisdictions have started to seize the opportunity,” said Cassie Craddock, British and director general of Europe at Blockchain Company Ripple.
Among these jurisdictions, the United States has taken a much more pro-Crypto position since President Donald Trump took office. Trump is committed to doing the World City of Cryptography in the United States while Securities and Exchange Commission (SEC) has withdrawn or interrupted several high-level legal affairs against cryptographic companies.
The EU, on the other hand, paved the way for the establishment of clear rules for the cryptography sector with its markets in the regulation of cryptocurrency (Mica).
“The United States drives global tail winds for industry,” said Craddock. “Mica entered into force in the EU at the end of last year, while Singapore, Hong Kong and the water are advancing all steam with pro-industrial reforms.”
The report one day came after the British government has published proposals to regulate cryptographic companies. But, underlines CNBC, the initiates of the industry say that there is still work to be done to solve more complicated technical problems, such as reserve requirements for stablecoins.
