With Brexit causing a financial turmoil in the country, experts opine that cryptocurrencies and other digital assets will grow in value in the region
Brexit is currently shrouded by uncertainties. While no individual or organization is sure about the terms which will be agreed upon, or if there will be any, most are of the opinion that it is bound to happen. UK Prime Minister, Theresa May, has resigned after her re-proposal (of an already rejected proposal), was turned down as well. The most likely event, is that the deadline for the event, will be extended, so that they can come to an appropriate arrangement for financial trade, with the European Union. However, currently the country’s economy is in a sorry state of affairs, although, that may translate into a boom for cryptocurrency.
Ever since the motion for Brexit was passed in 2016, the country has been losing GBP 800 million on a weekly basis. The GBP value went to new lows as compared to the US Dollar, and the Euro. A financial analysis firm has stated that approximately 275 finance companies have exited the country, in the wake of the decision. Historically, cryptocurrencies are known to thrive in times of economic crisis.
Analysts project that Britain, post-Brexit, will have much friendlier regulations on cryptocurrency and digital assets. However, some analysts also have contrasting opinions. They believe that a government restructure, could possibly delay the necessary framework for cryptocurrency transactions.
“Almost 44% of analysts believe Brexit would not affect crypto regulation in the UK.Under a no deal scenario, withdrawing from the EU would lead to a repeal of the ECA. This would effectively remove 17,105 legal instruments across many areas of law, thus creating serious complications for the UK legislative system. After Brexit, the government3would then need to focus directly on legal processes associated with traditional political, economic and financial issues.” Says a report from financial intelligence firm, Cindicator.