[ad_1]
The uncertainty of regulations in the British blockchain sector has emerged as one of the major concerns for register technology companies deployed in the country.
According to research conducted by Digital Catapult Digital Innovation Agency, 74% of UK blockchain companies cited regulatory issues as one of their key concerns, overcoming other issues such as access to technical skills, corporate or legal.
These regulatory challenges include the General Data Protection Regulation of the European Union (GDPR). Since the GDPR unifies the European regulatory landscape regarding the use and storage of personal data, legislation has become a critical point for companies that use blockchain without authorization as data storage is not limited to a particular geographical position.
"This legislation has raised concerns for companies that use public and unlicensed blockchains, open to anyone, regardless of location, and where complete copies of the database are replicated on all nodes participating in the network, making it impossible to selectively limit where the data "Digital Catapult wrote in the report entitled" Blockchain in action: State of the UK Market ".
Right to cancel
Furthermore, the GDPR authorizes citizens to delete their personal data at any time and this is in conflict with the nature of public license-free blockchains in which data becomes immutable once registered.
Another source of uncertainty was regulatory uncertainty regarding the raising of funds through the Initial Coin Offerings. The report found that the UK Financial Conduct Authority had indicated in the April of this year that it would regulate IBOs, but has not yet issued a formal guidance on the date of publication of the IRS. investigation. For the companies that were interviewed, the delay in the delivery of the guidelines further accentuated the uncertainty and consequently hindered the ICO plans that some projects may have had:
"This uncertainty has been raised many times by the companies consulted, as they were not sure whether they would have to conduct an ICO in the UK or allow UK citizens to participate given the current regulatory landscape."
Regulatory uncertainty has also influenced the relationships between blockchain companies and traditional financial institutions. In the survey that surveyed 264 DLT companies, 54% of the blockchain companies said they had difficulty opening a bank account with companies particularly affected by those involved in cryptocurrencies.
Still growing
In addition, the survey found that companies that had raised funds in crypto-assets found it particularly difficult to obtain a traditional bank account despite the necessary anti-money laundering controls and Know Your Customer to be undertaken on investors.
Despite regulatory challenges, the report found that the UK DLT sector is growing and investments in the sector continue to swell:
"… investments have gone from just over $ 50 million in 2016 Q3 to US $ 150 million in 2018 T2 (with ICO-related investments exceeding $ 100 million in Q4 of 2017 and fiat investments rising to over $ 100 million in 2012 of 2018). "
Shutterstock foreground image.
Get an exclusive cryptographic analysis by professional traders and investors on Hacked.com. Register now and receive the first month for free. Click here.
