The UK should solidify its position as a Fintech hub by creating a welcoming regulatory environment for crypto, industry experts claim.
Last year the UK was the largest European destination for blockchain investments, attracting 29 per cent of crypto related venture capital funding in the region according to Dealmaker data. While the UK’s blockchain industry attracted a whopping £1.6bn from investors in 2021 industry experts are concerned that investment is being held back by a lack of clarity on digital assets from regulators.
“The UK’s lead in blockchain investment reflects our position across Fintech investment as a whole, where the UK secured a record-breaking total of $11.6bn investment in 2021, more than the next six European countries combined,” Adam Jackson, the director of policy for Innovate Finance, told City A.M..
“To capitalise on this we now need a strong vision from the UK government, a joined up strategy and a regulatory system that can evolve in collaboration with industry and other nations,” Jackson added, calling for a robust regime on digital assets to support innovation.
Viktor Fischer, the managing partner of Rockaway Blockchain Fund, which controls $123m of venture capital, said that London’s status as a fintech hub makes it the natural European centre for the crypto industry.
“Together with London’s status as a global financial hub, the UK has the capital and expertise for investors excited about the opportunities for the automisation and digitalisation of financial services presented by blockchain technologies,” commented Fischer, speaking at Rockaway’s Investor Summit in London.
Fischer noted that the UK’s tech sector continues to outpace competitors in Europe, underscoring its potential as a blockchain hub. Last year the UK attracted £29.4bn worth of investment – more than double that of Germany which attracted £14.7bn of investment and three times as much as France which drew in £9.7bn.
Dusan Kovacic, the chief investment officer at Rockaway Blockchain Fund called for developers to make the leap from traditional tech to blockchain.
“Building on top of programmable money enabled by blockchain opens a new era of commerce where financial and social use-cases, including social networking and gaming, converge into a coherent virtual experience. But we need developers to make the jump” said Kovacic. “The UK has all the ingredients – deep tech expertise and active investors – to become a global Web3 epicenter.”