Tuesday January 28, 2025 13:57
While the cryptography markets have dropped in recent days after the release of the technological companies of Deepseek Shook, British companies have trouble maintaining the momentum of digital finances.
Bitcoin managed to withdraw above the $ 100,000 mark this morning after the new DEEPSEEK IA model has shaken the actions of the Magnificent seven; Apple, Microsoft, Google Parent Alphabet, Amazon, Nvidia, Meta and Tesla, it also caused a 6% drop in bitcoin prices yesterday.
With the cryptography market stimulated by Trump’s re-election, signs have started to emerge that the American market force is likely to weaken the UK digital asset sector.
Last week, Eric Trump, Donald Trump’s son, tackled the idea of ”cryptographic zero fiscal policy” for American cryptocurrencies, to encourage innovation and investment in the sector.
However, the proposal would only eliminate capital gains tax for cryptocurrency companies operating in the United States, with offshore crypto projects serving American users paying a capital gains tax of 30% .
Although the proposal has not yet received a legislative support, the influence that Eric Trump has on his father is worried, the currencies not based on the United States falling in response.
Radix, one of the largest cryptocurrencies in the United Kingdom, is down more than half in the last month, and all the best British crypto tokens decreased last week from news.
Meanwhile, Trump Ally Ted Cruz challenged a new tax rule targeting decentralized finances which force them to file tax forms reporting the amounts, names and addresses of user transactions.
Why the success of American cryptography can be bad for Great Britain
Other Trump crypto-friendly proposals on the campaign trial, such as a bitcoin reserve law which would force the US government to have a million bitcoin, or a more friendly regulatory regime, continues to be presented by the American legislators.
The FNB Bitcoin Spot, which are prohibited in the United Kingdom, also continue to see money flow, with the largest ETF Bitcoin, Ishares Bitcoin Trust in BlackRock, holding $ 57.9 billion (46.6 billion pounds sterling) in active ingredients.
Although this can be good news for crypto companies based in the United States, it is not for the United Kingdom.
Recent reports have revealed that the British government had tried to attract one of the largest venture capital companies in the world, Andreessen Horowitz, to move to London with promises of a friendly regulatory regime.
This decision, “the culmination of five years of management of proactive accounts” by the Ministry of Business and Trade according to the documents seen by SIFTED, was abandoned last week in favor of the American market Cryptography.
While the Minister of the previous city, BIM AFOLAMI, was publicly combined with Pro-Crypto regulations, its TULIP SIDDIQ replacement did not prioritize the sector, canceling several meetings with cryptographic companies.
In addition, most cryptocurrencies are at the cost of the US dollars, leaving the weakening of the book less capable of buying the same crypto amount as before.
Cryptographic companies continue to flock to the United States, and with progress on the regulation of digital currencies in the United Kingdom, the trend should continue.
