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The workers cross a cross near the Bank of England (BOE) in the city of London, the United Kingdom, on Tuesday, April 8, 2025.
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London – Great Britain runs the risk of losing Fintech entrepreneurs and criptomonetas in the treasury by rival centers if it does not address the challenges of regulation and financing pressed, according to the leaders of the industry.
Several cryptographic bosses told CNBC this week that the United Kingdom has created an unfavorable environment for Fintech and Crypto. They argued that the local regulator adopts a too strict approach to register new companies, and that pension funds that manage billion pounds are too reluctant to risk
While a decade ago, the United Kingdom was seen as “the avant -garde in terms of promoting competitiveness and innovation,” today, “they have changed more towards the prioritization of security and solidity at a point where growth has been delayed,” according to Jaidev Janardana, British digital Bank Zopa CEO.
“If I look at the speed of innovation, I feel that the United States is ahead, although they have their own challenges. But look at Singapore, Hong Kong, again, you see a much faster innovation,” Janardana told CNBC. “I think we are still ahead of the EU, but we cannot continue to be complacent with that.”
Tim Levene, CEO of the Risk Capital firm, Augmentum Fintech, said that entrepreneurs face challenges that attract funds in the United Kingdom and could be tempted to start their foundation trips in other regions, such as Asia and the Middle East.
“We are fighting in search of capital pots in the United Kingdom, where it would currently be more fruitful to go to the Gulf, go to the United States, go to Australia or in other places in Asia, and that does not feel good,” Lvenene told CNBC.
Lisa Jacobs, CEO of the Brexit Financial Business Loan Platform, said Brexit’s negative impacts are still being felt by the Fintech industry of the United Kingdom, particularly when it comes to attracting talent abroad.
“I think it is correct that we are paranoid on other places,” he told CNBC. “It is correct that we are trying, as an industry, as a government, to make the United Kingdom remain that excellent place to establish. We have all the ingredients there, because we have the ecosystem, we have this talent establishing new businesses. But it must continue. We cannot rest in our laurels.”
Cryptography rules are not clear
The United Kingdom is home to a vibrant financial technology sector, with companies such as Monzo and Revolution among which scale to become challengers of traditional banks.
Industry experts attribute their rapid increase in the friendly rules with innovation that allowed new technology companies to request and ensure licenses to offer banking and electronic money services more easily.
Companies operating in the world of cryptography are frustrated because the same has not yet happened for their industry.
“Other jurisdictions have begun to take advantage of the opportunity,” Cassie Craddock, the United Kingdom and managing director of Europe at the Blockchain Ripple firm.
United States, for example, has adopted a more pro-crypto position under the president Donald Trumpwith the Securities and Exchange Commission falls Several legal cases of high profile against the main cryptographic businesses.
Meanwhile, the EU has led the way when it comes to establishing clear rules for the industry with its markets in the regulation of cryptographic assets (Mica).
“The United States is promoting global tail winds for the industry,” Craddock said, adding: “Mica entered into force in the EU at the end of last year, while Singapore, Hong Kong and the United Arab Emirates are moving at full speed with reforms in favor of the industry,” he added.
The United Kingdom presented on Tuesday a draft proposals to regulate cryptographic companies; However, industry experts say that the devil will be in detail when it comes to addressing more complex technical problems, such as reserve requirements for Stablecoins.
Rules about unclear stablecoins
A particular area in which Fintech and Crypto leaders want to see more clarity is Stablecoins, a type of cryptocurrency whose value is linked to that of a sovereign currency.
Mark Fairless, CEO of the Payment Infrastructure firm, ClearBank, told CNBC that his business has been looking to develop his own stable, but has been prevented by launching one due to the lack of regulatory clarity.
Stablecoins are “part of our medium -term medium -term strategy,” Fairless told CNBC. “See you well prepared for that.” However, he added that a Clearbank Stablecoin will only be possible when there is regulatory certainty in the United Kingdom, the startup is waiting for the approval of the Bank of England.
The experts of the cryptographic industry also say that the FCA has been too restrictive when it comes to passing records of digital asset companies. The FCA is the regulator responsible for registering companies that wish to provide encryption services within the scope of money laundering regulations in the United Kingdom
Last year, The Watchdog Published a road map It details your plan to implement cryptographic regulation. The road map includes a series of discussion documents on topics ranging from Stablecoins to cryptographic loans in the next two years. TO The complete regulatory regime is expected to be activated by 2026.
Another problem faced by cryptographic companies is to be “discouraged” by street banks, according to Keith Grose, head of the United Kingdom in Coinbase.
“Debanking is a big problem: it cannot obtain bank accounts if it is a company or individual who works in cryptography,” said Keith Grose, head of the United Kingdom of Coinbase, to CNBC. “You can’t build the future of the financial system here if we don’t have that level game field.”
A survey conducted by Startup Coalition, Global Digital Finance and the Cryptoasset Business Council of the United Kingdom of more than 80 cryptographic companies published in January found that half were denied bank accounts or that the main banks were closed by the main banks.
“I think the United Kingdom will achieve it well, but there is a risk if it is wrong that it drives innovation to other markets,” said Coinbase’s Grose to CNBC.
“This is such a rapid development space: Stablecoins grew by 300% last year. They are already making more volume that Visa and Mastercard,” he added. “I think that if you deliver an intelligent regulation here, Stablecoins can be a fundamental part of our paid ecosystem in the United Kingdom in the future.”
