With the United Kingdom seeking to become a cryptocurrency hub, the Winklevoss twins are advising the United Kingdom Government to not let itself be influenced by the politicisation of cryptocurrency in the US.
United Kingdom regulation is encouraging
The Winklevoss twins, American billionaire owners of the Gemini cryptocurrency exchange, are in London holding talks with numerous British financial bodies such as the Bank of England and the Financial Conduct Authority (FCA).
Although while in London, the Gemini owners gave an interview to City A.M., in which they advised United Kingdom politicians not to “politicise” the government’s regulatory stance towards cryptocurrencies.
The Winklevoss twins were stated to be “encouraged” by the direction the United Kingdom is taking on cryptocurrency regulation and were of the opinion that it was “forward thinking”. They said:
“We are encouraged [by] the state of regulation here. We know of course the United Kingdom has a huge tradition of being a thoughtful regulating authority and a forward thinking regulating authority. And that’s why we chose to be here – there is many of credibility,”
“We made that decision to invest here years ago, and we’re here to express that we want continuation to do that and make the United Kingdom a home for crypto.”
They commented that they were “surprised” by the past few report by the United Kingdom Treasury Select Committee stating that digital currencies should be treated as “gambling”, and made the comment that if this were the case then perhaps commodities like oil and gold can potentially go into the same category.
Mixed noises from the United Kingdom financial institutions
The United Kingdom has so far made as numerous positive noises on cryptocurrency as it has negative, with Prime Minister Sunak declaring that the United Kingdom wished to become a worldwide hub for cryptocurrency (when he was Chancellor).
Nonetheless, it would seem for a country so embedded in the traditional financial system, with its City banking operation one of the most powerful in the world, that to go the path of inviting cryptocurrency corporations to establish shop there can potentially be an incredibly difficult route to take.
In the past, the governor of the Bank of England, Andrew Bailey, has was known cryptocurrency “dangerous”, even while acknowledging that many of innovation was coming out of the sector. He has stated that he doesn’t believe cryptocurrency will provide a future payments network.
With the United States likely to be applying pressure on the British Government in the background, and with what has been termed an “overly bureaucratic regulatory environment” by CEO of Revolut, Nik Storonsky, as the BoE looks to be in the procedure of turning down a banking licence for the UK’s largest startup, the coming weeks and months are going to be critical for the UK’s fledging cryptocurrency sector.