Forbes: how Brexit is affecting the Bitcoin and blockchain industries

posted almost 6 years ago
The Brexit was entirely unexpected, and there are a lot of different implications for the Bitcoin and blockchain industries. Even though blockchains present themselves as inherently trustless systems, trust is still required when working with Bitcoin and blockchain companies. Having relationships with banks regulated by the UK has a distinct advantage from a trust and pedigree standpoint. Also, obtaining the acceptance of the U.K.’s regulatory agency would almost immediately dispel those concerns.

Now it's changed. One big advantage of being part of the E.U. is the ability to passport a financial license. When you get a license for financial services in one country, you are able to passport this license to other countries, meaning you do not have to spend money, time and other resources on applications for each country.

Now that the U.K. is seeking to leave the E.U., it is uncertain they will keep the passportability of their licenses. This is incredibly important for startups in the Bitcoin and blockchain industries when choosing a headquarters within Europe.

Talented foreigners have long flocked to London, but now the future is much less certain. With the tightening of borders, companies within the U.K. may be forced to outsource to the rest of Europe.

But there is also an upside for the industry. Bitcoin first became a refuge asset during the Cyprus banking crisis in 2013. Today concerns over the Brexit are again driving interest in Bitcoin. Moreover, when it comes to the erection of payment barriers, such as those which would come, blockchain will play an important role. So the U.K. rebuilding a barrier between themselves and Europe is more of an opportunity than a problem for Bitcoin and blockchain industry.
Tags: opinion, bitcoin, blockchain