Within the following several years, UK is well-placed to become a global hub for blockchain technologies, as well as cryptocurrencies, according to some analysts.
The UK is becoming a global hub
The UK has all of the required resources for becoming a global hub for blockchain technologies, as well as cryptocurrencies within the following few years, according to one report published on Monday.
The report of 960 pages authored by analytical companies Big Innovation Centre, DAG Global and Deep Knowledge, reveals that since last year, over £500 million worth of investment was poured into UK blockchain companies. This, also combined with the existing leadership of UK in the FinTech, and industrial, as well as regulatory support, led to the conclusion of the report that the UK has the opportunity to embrace a role of the global leader in both, the digital, as well as the crypto market by 2022.
The co-founder and CEO of DAG Global, named Sean Kiernan commented in a press release, announcing that the findings from the research saying that the UK is a major global financial hub and recently, it has become a FinTech leader too. At the same time, the CEO also said that it is starting to demonstrate vital potential to become a leader in the blockchain technologies and the crypto economy too. The gap which exists between the two worlds of traditional finance, as well as crypto economy still remains, but in the coming years, the CEO said that they are expecting this to lessen and eventually disappear.
The blockchain is seen as essential and disruptive technology.
The CEO of Big Innovation Centre, named Birgitte Andersen said that blockchain was recognized by the UK parliament as a significant, as well as disruptive technology, and then it has shown engagement to encourage the accelerated development of the digital economy by a variety of initiatives from the government.
Also, the UK was not historically bullish on cryptocurrencies. Last month, the Financial Conduct Authority (FCA) of the country issued a warning on cryptocurrencies, informing the British banks about the potential risks which are posed by this new asset class, as well as advised them to increase their security of clients offering crypto-related services.
Formal warning on ICOs
In September last year, the authority released a formal warning on the ICOs, stating that they pose very high-risk, speculative investments. In November 2017, the FCA also warned about cryptocurrency Contracts for Differences (CFDs), which are a type of derivative trading. After one month later, the CEO of the FCA, named Andrew Bailey said that buying Bitcoin represents some similar risks like gambling and since it is neither backed by central authorities nor it is regulated, the cryptocurrency is not a safe investment.
Later this year, the UK is expected to reveal cryptocurrency regulations. In March 2018, the FCA had an announcement that it is going to be collaborating with the UK Treasury Committee and the Bank of England in drafting a discussion paper on different aspects, risks, as well as opportunities that are presented by cryptocurrencies.