At Coinbase (NASDAQ:COIN), they’re working hard to help update the financial system by building trusted products that aim to “expand the utility and adoption of crypto because they believe crypto and blockchain technology have the ability to increase economic freedom and opportunity around the world.”
Coinbase chose to become a public company in the US because they believe “the US would best be served by embracing this fundamental innovation, but they’re also focused on international markets, many of which are moving forward with strategies to become ‘crypto hubs’.”
Coinbase would like to see the US “take a similar approach, but a regulation by enforcement approach in the US is instead leading to a disappointing trend for crypto development in the US.”
Last year in the UK, the Chancellor of the Exchequer, now Prime Minister Rishi Sunak, made clear his goals “for Web3, aiming to make the UK a global crypto hub.”
The government noted “the importance of crypto and digital assets for the future of finance and the jobs the sector creates, and moved to do what some jurisdictions have conspicuously not done: consult with industry leaders to ensure effective regulations are developed.”
Just this week, at the Conservative Party Conference in Manchester, the Government doubled down on this, with Chancellor Jeremy Hunt stating:
“We’re going to make Britain a global leader in the industries of the future – the world’s next Silicon Valley.”
A welcome new report, published by the UK think-tank Policy Exchange, describes “how blockchain technology will be the underpinning of the next wave of internet development (Web3), and crucially how the technology can be harnessed across a broad swathe of economic sectors, not just financial services.”
It shares recommendations for “what the UK Government needs to do to capitalise on the innovative potential of this powerful new technology.”
This is especially important in the context of “increasing regulatory uncertainty across the pond. Several major firms, including ourselves, a16z, and Fidelity have set up operations in the UK.”
Other companies, for which Web3 is “not a pivotal part of their business, like Revolut and Gamestop, are shutting down their blockchain applications in the US to avoid the potential ire of regulators.”
As noted in the update from Coinbase, the Bank of England has been a global leader on the future of money, and they “recognize the potential for blockchain technology to improve payments by increasing efficiency, lowering costs, and introducing enhanced programmability.”
Coinbase’s recent assessment found “that 83% of major global financial hubs are providing increasing regulatory clarity on crypto.”
The UK is part of this figure, and indeed, “due to its foresight, has already enjoyed significant success in attracting Web3 startups.”
