In June 2016, the British public voted through referendum for the UK to become independent of the European Union. Three Prime Ministers later, the act was performed on 31 January 2020. The drawn-out process mostly concerned London’s negotiations with Brussels to confirm the most favourable economic deals for the UK. Cryptolydian analyses how Brexit will affect the UK’s cryptocurrency trade.
Brexit and UK Economy
In the wake of Brexit, the British pound weakened to its lowest rate against the US Dollar in some years. Europe receives almost 50% of the UK’s exports, thus the economy is largely reliable on desirable trading regimes with Europe.
A leading argument for leaving has been the fact that the UK would no longer be subject to EU regulations. Crypterium reports that this might help soften British cryptocurrency regulations and make it more accessible.
British Cryptocurrency Firms
British cryptocurrency now faces logistical and legal challenges as the EU borders shift further left from the British Isles. Many Europeans invest in the UK’s markets and vice versa. The trick now is to find sustainable ways for these mutual cryptocurrency schemes to continue without any major legal issues.
Some believe that Brexit will have less of an impact on digital industries such as cryptocurrency. This is because it would not be classed in the same way that imports and exports are. In conversation with Finance Magnates, Danial Daychopan reports that FinTech companies are flexible in offering services for Europe and the UK. He says the main concern for British companies will be potential tariff charges on services, although he confirms his beliefs that these will be minimal due to the digital nature of cryptocurrency.
As the Brexit saga unfolds, one can only imagine the effect Brexit will hold for the UK and Europe at large. If it were to follow the same trajectory as European neighbours Russia and Portugal in this regard, the results would be satisfactory.