US-based venture capital firm Andreessen Horowitz (a16z) says that it is expanding to the United Kingdom (UK) because crypto regulations are clearer there.
In a new announcement, Chris Dixon, the founder of Andreessen’s $7.6 billion a16z crypto fund, says that crypto can only succeed where governments are establishing clear rules for digital assets.
The announcement comes just days after the U.S. Securities and Exchange Commission (SEC) sued the world’s top two crypto exchanges Binance and Coinbase for allegedly breaking their rules.
Says Dixon,
“Over the last year, it has become clear that blockchains and the software movement around them – usually called crypto or Web3 – can only succeed with a clear regulatory regime that provides an open pathway for startups while also protecting consumers from fraud and manipulation. This regulation should be aimed at stamping out the ‘casino’ culture that has developed around crypto, while also allowing constructive applications to reach their full potential.”
According to the announcement, a16z will open its first office outside of the United States in London later this year with a focus on crypto startups. General partner with the firm Sriram Krishnan will run the new office, which will also spearhead initiatives to bolster crypto in the area, including setting up a Crypto Startup School and supporting blockchain clubs at local universities.
British Prime Minister Rishi Sunak celebrated the official opening in a statement, saying that his administration is determined to make the UK a global web3 hub.
“As we cement the UK’s place as a science and tech superpower, we must embrace new innovations like Web3, powered by blockchain technology, which will enable start-ups to flourish here and grow the economy.
That success is founded on having the right regulation and guardrails in place to protect consumers and foster innovation. While there’s still work to do, I’m determined to unlock opportunities for this technology and turn the UK into the world’s Web3 center.
That’s why I am thrilled world-leading investor, Andreessen Horowitz, has decided to open their first international office in the UK – which is a testament to our world-class universities and talent and our strong competitive business environment.”
Dixon says that while “more work needs to be done” on UK’s crypto regulations, he praises the country’s willingness “to work with the industry to create policies that incentivize startups to pursue decentralization.”
The announcement comes after a bipartisan parliamentary group known as Crypto and Digital Assets All Party Parliamentary Group (APPG) issued a report that says the UK has between a year and a year and a half to create clear crypto regulations in order to take a leadership position in the global digital asset market.
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