The UK needs adoption of Crypto regulation to stay relevant in Fintech

Once a leader in the Fintech sector in entire Europe, Great Britain now seems to lose its ground after Brexit

On 31 January 2021, the United Kingdom made its official exit from the European Union, termed ‘Brexit.’ Reports and research allured in tons describing the effects of breaking a 47 years bond as an EU member. Brexit could be considered a regressive step to make distance from its neighboring countries and make strict border laws amongst free thinkers of society. 

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One of many effects were obvious to see on the economy after all new tariffs and export charges were introduced, which were according to the terms of the European Union and same for all member countries. 

Good old days of UK in Fintech

For an extended period, the commonwealth nation remained a stable and leading economy, but it seems that now it’s facing setbacks in various sectors. However, to overcome those halts in progress, the UK needs to move ahead with adopting new generation tech and disrupt markets with colossal demand, such as the crypto market. 

Although things are not as bad as they may seem, lawmakers might be able to draw a silver lining by considering the adoption and regulation of cryptocurrencies. Group of some members of parliament has listened to the views across different political groups. Their discussion signals good hopes for taking steps towards the new emerging direction. 

Forward approach now towards Crypto

Many members were against the decision of Britain’s withdrawal. For instance, Lisa Cameroon, a member of parliament from the Scottish national party and chairperson of APPG, says that approximately 60% of Scottish voters called out against Brexit, but that was ignored. But it’s now time to move forward and see the cross-political hearing about crypto and its regulations. 

She thinks that this could be exciting to move the country’s economy forward and make people come forward to learn about it and teach young people code in schools. Adopt the tech as vast as possible. Other than Lisa, many other members of the Crypto and Digital Assets All-party Parliamentary Group (APPG) have voiced support.

After the 2008 recession, where many countries lagged in their economies, the UK took charge of its economy with its intelligent decisions and quick moves and successfully took its economy back on track and even better. Its policies attracted many foreign companies and had been a financial technology leader at the time. 

But it was seemingly slow in the adoption of technological advancement, Cryptocurrencies, and since other countries noticed it, the UK was automatically left out behind. For instance, at the same time Britain was not able to bring attention towards Crypto, America grabbed the chance and had seen approx $100 billion worth of fintech firms going public.

Slow actions regarding ‘changes’ needs to change

Some reasons are its working of traditional institutions like Financial Conduct Authority (FCA). Simon Taylor, Financial consultancy 11:FS’s co-founder, says that Britain has been left out in the race of Fintech because of its way of policy making and working with no worthy efforts to influence the market. 

He criticized the working of FCA by saying that it’s so strict in its rule for requests for company registrations but acts too slow for its implementation, and companies are unable to start working without registration. While countries like UAE and Singapore have developed systems so complicated yet easy to implement and company friendly to keep companies investments safe and manage risks.

Taylor said in an interview that there is a need to change the rhetoric views and workings of the Financial Conduct Authority. People chose to step out from the UK to set up their firms, saying that they would never pass through the Government’s regime. He suggested this needs to get changed, and Government and lawmakers should keep an eye on crypto and related regulations.