Prof. Naseem Naqvi (Founder and president of the British Blockchain Association) introduced a panel of esteemed members to discuss the topic of making the UK a successful hub for blockchain technology and digital assets during the London Blockchain Conference 2024. The panel consisted of:
- Dr Lisa Cameron, Member of Parliament and chair of the All-Party Parliamentary Group for Digital Assets and Cryptocurrency, introduced herself as the first psychologist elected to the UK Parliament;
- Sean Kiernan, founder of Greengage, a B2B Web3 fintech, explained that his company provides banking services and lending to crypto companies and SMEs;
- Marcus Foster, Head of Policy Campaigns for the Start-Up Coalition, a lobby group for UK tech startups.
Solutions and use-cases
Naqvi discussed the broader applications of digital assets beyond their monetary use and asked the panel about future solutions. Kiernan noted that the UK has a strong foundation to become a crypto hub, with London’s status as a financial and tech centre and its common law system. He stressed the importance of industry engagement, education, and setting standards for adopting blockchain technology.
He further highlighted stablecoins as a significant innovation for cross-border transactions, reducing costs and risks. He also noted that large-scale projects, like digitising the land registry, require high standards and collaboration to achieve meaningful efficiencies across various sectors.
Challenges to the adoption of blockchain and digital assets
Naqvi initiated the discussion with barriers to digital asset adoption in the UK, aiming to identify challenges and potential solutions. Foster highlighted key issues, such as the difficulty crypto and Web3 startups face in accessing bank accounts and funding. He highlighted his personal experience as the leader of the Start-up Coalition:
‘We ran a survey of 50 blockchain and Web3 Start-Ups asking them about their issues with accessing banking. All of them had trouble. All of them were on, at least, a second bank account because one had been closed.’
Kiernan added that while blockchain technology is functional, broader adoption is hindered by the lack of involvement from large corporations and the absence of home-grown “unicorn” companies in the UK. He underlined Foster’s point and emphasised the need for better access to capital.
Regulatory efforts
Dr Cameron highlighted the importance of ongoing parliamentary efforts to address industry challenges, noting that the UK government has a clear vision for becoming a leader in digital innovation. Cameron emphasised the need for industry collaboration with Parliament to ensure successful implementation and momentum. She also stressed the importance of education and skills development to prepare for the future digital economy, calling for collective efforts to build “Digital Britain.”
She emphasised that the All-Party Parliamentary Group (APPG) for Digital Assets and Cryptocurrency, which she chairs, is addressing key challenges like access to banking and streamlining the FCA registration process. Cameron highlighted that these issues are barriers to realising the UK’s vision as a blockchain and crypto hub and are priorities for the APPG’s efforts.
Naqvi raised concerns about a disconnect between the UK government’s goal of becoming a crypto hub and the actions of regulators. Dr Cameron acknowledged this issue, noting strong political support from the Prime Minister for tech development, including crypto and AI.
Foster highlighted the lack of clarity around why banks refuse or close accounts for crypto businesses, suggesting the need for more transparency and data. He proposed adopting systems like those in France and Hong Kong, where banks are obligated to provide accounts to businesses.
Foster also emphasised the importance of ensuring that upcoming crypto regulations consider the diversity of business models in Web3, advocating for different regulatory processes for distributed protocols versus traditional entities.
