With Brexit recently coming to pass, and the general outlook on the European Union when it comes to cryptocurrency businesses, it is important to gather if it is worthwhile bringing up such a company in Europe. Being such a diverse continent, but under one room – in most respects – European regulation is quite nuanced when it comes to the emerging crypto space.
But Europe is posing some difficulties for many companies trying to get a foothold in this new market. The potentially disruptive enforcement of the EU’s 5th Anti-Money Laundering Directive, or 5AMLD, has been some time in the making. This, however, will play a big role in deciding the future of certain companies.
Then again, the opportunity presented by Brexit also allows companies to easily shift their operation to the UK for greater security, as overall, the UK is seen as more welcoming of the cryptocurrency space. Then, there are places like Switzerland and its crypto valley Zug which have certain regulations intended on growing the innovation of space.
Is Brexit big for Crypto?
One issue where Brexit comes up in regards to companies operating across Europe is that the UK has now jettisoned itself off and no longer benefits from the free movement between the EU. This has an effect on companies that also operate across the EU and the UK.
Nathan Catania, a partner at global digital asset policy and regulatory adviser XReg Consulting, explained to Cointelegraph ”“Brexit is not currently a concern, as most crypto-related activities are either unregulated or only regulated for AML purposes.”
Additionally, Stepan Uherik, the chief financial officer of SatoshiLabs, the company behind the hardware wallet Trezor sees little impact of Brexit beyond short-term market volatility:
“Brexit and the uncertainty associated with it will, in the short term, affect the mood in the crypto markets and Bitcoin’s volatility. We do not think that any of the possible scenarios could cause a significant disruption in the cryptocurrency market. Bitcoin and the connected companies have already demonstrated long-term resistance to local crises.”
Elsa Madrolle, international general manager for blockchain solutions provider CoolBitX, is of the opinion that Brexit will make the UK a destination in Europe for cryptocurrency businesses.
“On one hand, political uncertainty is never attractive to a business looking for a foreign base — on the other, the UK remains one of the most familiar and attractive locations for US firms to establish an outpost.”