[ad_1]
A stable judicial system, friendly regulations, access to capital and years of courtship of the sector are all advantages
5 minutes of reading
Opinions expressed by Entrepreneurs contributed.
As the blockchain and cryptocurrency ecosystem evolves, London is emerging as the main financial capital most likely to become the global hub for the nascent industry. Other potential big hubs, like the United States, should take note or risk a brain drain while entrepreneurs move their start-ups to more friendly positions.
Related: Entrepreneurs are flocking to Europe to open cryptocurrency activities
The combination of a strong judicial system, friendly regulations and access to capital and the global banking system make the Kingdom United, Canada and Australia attractive to blockchain and crypto entrepreneurs.
Likewise, offshore premises like Bermuda, Malta and Mauritius are making great strides to develop a regulatory framework that will encourage blockchain and cryptocurrency innovation.
The definition of the right regulatory framework is vital because startups can move from one day to another in a new position. An emblematic case is the criptovalute startup of Miami CBlocks, which recently announced that it will move to Canada where regulatory expenses are significantly lower.
The economic implications are enormous.
Becoming a global hub for blockchain and crypto has enormous implications: we are in the middle of a gold rush that could be worth $ 2 trillion dollars because blockchain reimagines everything from how stock exchanges wipe trades to how we register mortgages for the home.
However, for this technology to truly reach its potential and create the Internet 2.0 age, the industry needs viable regulations. These rules must protect good businesses while safeguarding the interests of consumers and investors from fraud and fraud
It is also crucial that these rules do not suffocate innovation. Countries that adopt a collaborative approach to the regulations will benefit from it, while those that are too aggressive, cautious or slow will lose.
The world already has 1,600 cryptocurrencies, including Bitcoin, which have gained media attention because of their wild price swings. At the same time, blockchain-based products and services are being developed by countless companies and established start-ups.
Related: The & # 39; Crypto Valley & # 39; of Switzerland offers real opportunities to entrepreneurs Blockchain
The industry is on the move.
The IHS Markit analyst, Don Tait, estimates that the blockchain-enabled economic activity could amount to $ 2 trillion dollars within the next dozen years. As this market develops, these intrinsically virtual Internet-based businesses can move their businesses almost anywhere. This makes the regulatory framework of each jurisdiction crucial for deciding which locations will attract these companies and which do not.
London is rapidly becoming a global hub because for years Britain has encouraged blockchain and cryptocurrency through programs such as the Innovate project of the Financial Conduct Authority, which helps startups navigate the regulatory environment.
Australia also drew attention to its plans to replace the current blockchain bag compensation system. It is known among insiders that Canada is in exploratory negotiations with blockchain suppliers to do the same.
It is interesting to note that the company behind the Australian stock exchange project is the American blockchain startup Digital Asset Holdings. Broadridge, a US financial technology provider among the S & P 500s, is one of its investors.
Related: Thanks to Blockchain technology, the entrepreneurial spirit in France has never been stronger [19659009] Countries are bypassing the United States [19659010] While states like Delaware and Wyoming are taking a favorable position towards the blockchain, it is not surprising to see American companies are experimenting abroad while US regulators continue to struggle with the way to see the industry. The recent position of the Securities and Exchange Commission on cryptocurrencies could end up discouraging innovators from building their companies in the United States.
Competition is everywhere. Offshore positions like Bermuda and Malta are making aggressive moves to attract industry. Bermuda, formerly a reinsurance center, has created a Blockchain Task Force to explore how the regulatory environment can make the island a destination for utility tokens, tokenized securities, cryptocurrencies and coin offerings. He is also planning to modify his Banking Act to favor blockchain and fintech.
Malta's Prime Minister Joseph Muscat has recently declared that he wants his country to become a "global pioneer in regulating blockchain-related activities". And on July 4, the island nation approved three laws to encourage cryptographic societies to move there.
Related: Which European countries are the best for cryptocurrency startups?
Sensible regulation is the key.
state or country that wants to encourage innovation blockchain needs regulations focused on three areas:
1. In a world where custody rules are based on paper systems and traditional clearing houses, industry needs clear rules for the safekeeping of assets on blockchain. Industry-wide custodial standards are required with regard to the use of signatures and permits-based controls to eliminate a key risk in blockchain investments.
2. Industry needs clear guidelines that set the requirements that companies must follow to get a public token or a money supply: a move that Bermuda is doing by creating a new legislative framework to initial offers of coins.
3. The industry also needs clear rules that establish how the various types of crypto-companies must register with the competent regulators.
The development of sensible regulations requires a collaborative approach that involves listening to industry leaders, setting up task forces and finally writing laws that encourage innovation [19659007] In addition to Bermuda and Malta, South Korea is following this approach. The country is about to classify blockchain entities after talking with 43 government ministries, 17 regional municipalities and consulted with more than 160 institutions.
Countries that want to attract blockchain trade must pass laws that were born as a result of a consultative approach, considered.
After all, if you're not sure what you're doing, it's better to take things slowly. I'd rather wait for a reasonable law than be leaning against a bad one that could stay on the books for years.
