Brexit and Krypto: Why it's more about Blockchain companies than Bitcoin
It would be easy to put Bitcoin's old narrative in the context of Brexit, to devalue the British pound and the Euro, and to present the Bitcoin as a savior. The problem is, the correlation between bitcoin and political events is minimal, if any. Even ten years after Bitcoin's birth, it has not been significantly proven that the Bitcoin price has reacted directly and clearly to economic policy events.
Accordingly, it is not surprising that there are no extraordinary price swings in the Brexit theater between Pound and Bitcoin. That does not mean that the euro and pound sterling currencies are not reacting to Brexit – they do. However, not in correlation to cryptocurrencies, but to other fiat currencies.
One of the strengths of Bitcoin & Co. is that they do not correlate with traditional assets. It is precisely the independence of traditional asset classes and political stock exchanges that make cryptocurrencies so interesting from an investment perspective. Bitcoin is a safe haven because it is largely independent of economic policy and central bank policy, and not because it acts as an opposing position, as an anti-pound or anti-euro. The Bitcoin course is, at least so far, relatively no matter what happens outside its ecosystem.
Gibraltar & Co. – What will become of the deregulated overseas territories?
The United Kingdom is known for its financial market liberalization. Ever since Thatcher, along with former US President Reagan, has made Anglo-Saxon neo-liberalism popular, the City of London has played an important role as an attractive financial center in the world. In addition to the city and the UK, many British overseas territories have made their name as tax havens and, for some time now, crypto-friendly jurisdictions.
So far, many ICOs have focused on this very restrictive regulatory policy. Also some German Blockchain start-ups have carried out their ICO from Gibraltar. Accordingly, the question now arises as to whether Brexit restricts crypto accessibility for the European market. Since it is still unclear how Brexit will proceed and what specific changes it will bring in terms of crypto-regulatory external relations, this will be a burdening factor for some crypto companies and customers.
Instead of settling the crypto business in Gibraltar, jurisdictions such as Malta or Liechtenstein could become more prominent in the future. It should also be clarified to what extent crypto-related services are affected by Brexit. So it is z. For example, it is not entirely clear if and what could change for clients of UK crypto exchanges. Also traders and investors, z. For example, when trading Bitcoin CFDs, you may be faced with changes, restrictions and adjusted terms and conditions.
However, a distinction must be made here between Gibraltar and the numerous other British overseas territories. While Gibraltar is (still) part of the EU, the other UK overseas territories are not members of the EU.
A clear appeal to the EU and its member countries
The Brexit riots highlight the need for EU-wide crypto-friendly regulation. Most blockchain companies do not have their legal seat in Gibraltar, because the weather is so nice there, but because too many stones have been placed in their path in Germany or another EU country.
Greater regulatory clarity and a less restrictive legal framework for crypto start-ups would reduce dependence on the UK.
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