Brexit, Binance and Bitcoin: A New Era for Crypto in the UK?

Brexit, Binance and Bitcoin: A New Era for Crypto in the UK?

With the clock ticking on Britain’s much-debated exit from membership of the EU and all that means if a decision is finally agreed by September, where will this leave the UK in European Crypto Space? In a position of strength, or cut-off from its legislative support on the other side of the channel?

Well, no man is an island according to English metaphysical poet John Donne, but at this moment in time, it appears that the UK is digging its own hole in the sand as each week passes towards the latest agreed date of departure, when Great Britain and Northern Ireland hopefully get its rules back from the longtime European partners; the leaver’s much heralded and acclaimed  “taking back control.”

Does this even matter when it comes to cryptocurrency trading? In the UK the banks are aware of it, the Bank of England is monitoring it, and the man on the street pretty much knows about it. Bitcoin continues to be classified as private money, with VAT applied and also subject to capital gains tax, where profits and losses are involved.

However-and Britain has illustrated with great clarity to a dumbfounded Europe with its Brexit machinations-it is often slow to make decisions and enforce regulations; in fact, the UK now risks falling behind its European partners regarding cryptocurrency regulations unless it acts with more clarity and decisiveness, and guess who has taken up the leading role in this regard? The French…that must hurt.

Yes, the UK’s Financial Services Authority (FSA) did release a recent update of its progress which is currently in the hands of the specially selected Cryptoassets Taskforce.  However, a series of final guidelines or policy guidelines are still awaited from the FSA after the release of this consultation paper as far as regulatory dynamics go. With France now happy to lead Europe on a regulatory charge, Britain could be left counting its fingers after Brexit.

There are those in the UK however who like what they see in terms of crypto’s future after Brexit. Mike Romanov chief executive of Digital Securities Exchange (DSX) feels it can continue its dominance in the financial markets and crypto could come under the UK rather than EU legislative control. Others see an opportunity too, with a dent left in the Euro cryptocurrency market as Britain goes into its own crypto shell, out of reach from the EU’s legislative grasp, opening the door for new smaller players outside of the EU to leap in and plug some holes.

This is the Bitcoin bull’s stance, Britain hopes for friendlier digital currency regulations than it has at present. Another consideration is what might happen to the price of BTC with the impact of a final departure or possible vote to remain (the usual suspects) this year. There is a general feeling that it is simply the Brexit debate which is pinning the economy down and any kind of departure from this pain will be a release for both traditional and digital financial markets. According to the Bank of England, the economy has been shedding about £800M every week since they made the verdict in 2016.

There is one man who is just happy at what he sees, and if it continues, well then long may it do so. Enter Binance CEO Changpeng Zhao who, having now set up in Jersey is in the right place at the right time; well located for Europeans and Brits alike, whatever the outcome. With the existing offshore legal and regulatory framework for cryptocurrency, it is made to measure, given that there is now more than just a hint that Brits could turn to cryptocurrency come the predicted economic fallout given a no deal Brexit this year, and for this event, Zhao sees himself in the front line.

When it comes to crypto, the front line is always the place to be.

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