• The US is looking to drive cryptocurrency from its shores due to the fear of what would happen if crypto really gained traction.
• The UK has the potential to become a global hub for cryptocurrency and has been touted by Prime Minister Sunak as such.
• Banks may use their wealth and influence to try and change cryptocurrency policy in the UK, just like they tried in the US.
US Wants Crypto Out
The Biden administration and US regulators are taking action to push crypto out of their country, giving other jurisdictions an opportunity to fill this void. Crypto businesses have struggled with getting registered with the Security and Exchange Commission (SEC) due to concern about potential lawsuits. This has made it difficult for investors to access crypto in the US, leading them to look elsewhere for options.
UK Could Become Global Crypto Hub
The UK is one jurisdiction that could benefit from this move away from the US. Prime Minister Sunak has already announced his intention for the country to become a global hub for cryptocurrencies, with Coinbase and Binance both trying to be accepted there. SEC commissioner Hester Peirce even suggested that some of the UK’s regulatory framework could be adapted for use in America.
Banks May Try To Influence Policy
However, it remains uncertain whether or not banks will attempt to use their wealth and influence over cryptocurrency policy just like they have done in other countries such as America. Given how deeply embedded banking is within British culture, this could prove difficult for authorities trying to regulate cryptocurrencies without interference from financial institutions.
Ultimately, whether or not the UK manages to successfully become a global hub for cryptocurrencies depends on how successful it is at regulating them without interference from banks who may take advantage of their power and resources in order prevent further growth in crypto usage.
The Biden administration’s stance against crypto presents a unique opportunity for other countries around the world, particularly those like Britain which have strong financial systems already established within their culture. As long as authorities are able keep banks away from influencing policy decisions then there is great potential here for becoming a leader in crypto regulation worldwide