UK plans to become the global bitcoin hub

Most countries are on the verge of implementing measures to regulate Bitcoin companies. On one hand, some governments are willing to regulate strictly the companies whereas others pose a more flexible stance. Over the years, UK has remained the financial hub of Europe and as it is now, the country seems to be trending the same path for bitcoin.

Currently, David Cameron the British Prime Minister is finalizing his first trade mission, since he was re-elected, in South East Asia and he mentioned the usual culprits including Rolls-Royce, Lloyd’s of London together with  Blockchain, a bitcoin company.

This is a great thing for the UK’s bitcoin industry, since the government is yet to take a strict stand on the business. All the same, bitcoin companies should wait for a money laundering regulation soon. However, the Bank of England has offered several favorable statements on cryptocurrency in recent times.

UK’s action of inviting a bitcoin company to the trade mission is a clear sign that the country is willing to support bitcoin startups and becoming a trade hub of the same.  It is not the type of a company; you would expect to be included in an official trip to Malaysia, Singapore and Indonesia and Vietnam.

Lately, a blockchain that was established in London presently, have been growing remarkably. Over a period of six months, transactions involving Blockchain’s API and wallets have doubled and the company has garnered about 4 million users. In October 2014, the company had gathered $30 million.

The prospect of FinTech 2020

While the UK plays a major role in the development of FinTech industry, which contributes £20 billion to the UK annually and managed to grab 42% of all FinTech investment in 2014, David Cameron the prime minister is yet to be satisfied. To this effect, he has hosted FinTech 2020, whose main goal is to make the United Kingdom, the top location for about 25 international FinTech leaders, be it by global market share, valuation or IPO.

Over the years, the UK especially London, has welcomed several financial technology companies. According to Accenture’s report, UK takes the lead in Europe continent for FinTech investment, acquiring 42% of the total investments in 2014. In the country, the investment rose by 136% in 2014 from 2013’s $264m to $623. Nevertheless, Silicon Valley takes the lion’s share in the sector, with $2 billion compared to European’s $1.48 billion.

UK aims to use the FinTech 2020, as the platform for breaking the norm and to bring in several technology companies. Cameron is optimistic about this objective and his first move is to initiate a trade mission to South East Asia late this week, which affirms the proposed benefits both to the nation and internationally.

Cameron brings with him 31 business leaders drawn from all over UK, including an important delegation of FinTech companies, such as Innovate Finance’s Iwoca and Ratesetter as well as Al Rukies.

Does bitcoin have an opportunity?

This is a tricky question to answer. However, policy makers in the UK are willing to initiate cryptocurrency and Bitcoin companies in London.  They are already attracting the Bitcoin industry with various offers and the FinTech 2020 may be just one of them. At the starting of 2014, George Osborne, Finance Minister in his speech at Canary Wharf in London, mentioned that the government has started assessing the potential of digital money and virtual currencies including Bitcoin.

Chancellor George Osborne said,

“These alternative payment systems are popular because they are quick, cheap, and convenient – and I want to see whether we can make more use of them for the benefit of the U.K. economy and British consumers. I also want to be alert to the risks that accompany any new technology. With the right backing from the government, I believe we can make London the Fintech capital of the world.”

Based on what is going on in the UK and the FinTech 2020, it is clear that the government wants to enable cryptocurrencies, as integral to the solution it is looking for.

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