Friendly regulatory policies were rapidly turning London into a capital for blockchain innovation, that is until last week’s decision by the UK to leave the European Union left some wondering if this market position will be impacted.
From establishing a safe zone for blockchain firms to passing a measure that exempted bitcoin from value-added tax , the nation had arguably helped pave the way for measures currently under consideration in the EU while putting pressure on regulators in the US to rethink their policies on FinTech innovation.
If nothing else, the EU referendum, nicknamed the ‘Brexit’, has brought an air of uncertainty into an environment that had long been lauded by the technology’s advocates as forward-thinking and permissive.
Prior to last week’s vote, many European companies had taken to incorporating in the UK to "avoid red tape in their home countries", according to Wardynski & Partners attorney and digital currency specialist Jacek Czarnecki. But after the UK’s exit from the EU, he argued its appeal could decrease.
Czarnecki told CoinDesk: "At least in short term London will lose as a candidate for [Europe’s] digital currency capital. They still have much to offer, but considerably less than before and moreover with a large uncertainty as to the future." If the UK’s vote puts its status as a digital currency leader among European nations in jeopardy, other cities are poised to take over.
Czarnecki said Luxembourg, Berlin and Stockholm are all positioned to become stating points of digital currency commerce in Europe, while Rik Willard of blockchain consultancy firm Agentic Group, adds Zurich to the list of cities that have proven attractive for new industry companies. Time for renegotiation
To help minimize the fall-out from Britain’s vote to leave the EU, at least one member of the of the area’s blockchain community believes the commonwealth […]
