While many crypto investors are keeping an anxious eye on the blockchain bubble, there is another area of concern that they should also be watching: the regulatory front. Even now, state and national governments around the world are stepping up their efforts to bring some sense of regulatory order to the cryptocurrency ecosystem. And while it’s true that digital currencies were originally developed as a way of getting around invasive financial controls, there should be little doubt that the industry must eventually make peace with the idea of sound regulation if it wants to ever achieve true mass acceptance and adoption.
The UK may not seem the most likely candidate for a potential cryptocurrency growth market, but prudent regulation on the part of Britain’s government and regulatory bodies and strong forecasts for economic growth present a serious opportunity for digital currency investors and businesses. But the future is not entirely bright: the threat of an increasingly left-wing opposition, an increasingly fragmented Britain, and a strained relationship between the UK and her EU partners, all provide cause for concern. Nevertheless, in the short-term at least, Britain has been silently increasing her attractiveness to cryptocurrency businesses – and, with indications that the UK’s positive attitude to digital money innovation will become a permanent feature of government policy and regulatory thinking, there is a fair chance that Britain will become, as her finance minister hopes, a hub for the development of digital currency business.