Brexit Britain is leaving the EU and US in the shade to become a “world leader” in crypto regulation, according to an expert. Dennis Loos began investing in blockchain in 2014 and has become known as the Wolf of Crypto since establishing himself as a leading expert in the field.
The 30-year-old German national says that out of the world’s chief financial cities, London is “well ahead” of New York and Frankfurt when it comes to regulating crypto.
Speaking to Express.co.uk, he added: “London is pretty much ahead of the game at the moment.
“I don’t think it’s down to Brexit, but more the fact that, unlike Germany, the UK has a central bank that can initiate a move towards regulating cryptocurrency.
“Germany, or any Eurozone country, can’t do that because they will be waiting on the European Central Bank to act.
“And if and when it does, there will have to be a consensus agreement across the Eurozone which will likely take a lot longer and meet opposition from governments who do not like crypto.
“The US government could act to regulate crypto but is showing little sign that is it willing to go down this path at the moment.
“Both of their situations are diametrically opposed to the UK’s, where the government had actively initiated regulation.
“This is coupled with the UK’s central bank (the Bank of England) having the autonomy to change rules quickly.
“All of this is putting the UK on course to become a world leader in crypto regulation.
“That could all change if a new government is elected and isn’t so keen on crypto.
“Whether that happens remains to be seen but on the current trajectory crypto traders and businesses will continue to come to London because of its friendly stance on blockchain.”
He cited London topping Recap’s annual list of top crypto hub cities for 2023.
It has an estimated 2,173 people working in crypto-based jobs, the highest number of people working in the industry compared to anywhere else.
Mr Loos – who now lives in Dubai – says that despite recent volatility in the crypto industry he believes it will only continue to grow.
Last November, the price of Bitcoin dropped below $16,000, a year after it reached a record high of $69,000.
It has since rebounded to be worth around $24,000.
But with 90 percent of the world not having a bank account, being able to buy and sell using crypto on smartphones will always appeal to many, he said.
Mr Loos believes that crypto in the future will be based around coins run by central banks – like the European Central Bank, the Bank of England and the US Federal Reserve.
This regulation will give the coins more stability but also mean a reduction in the amount of anonymity people can have.
“I don’t believe for one second that governments will invest in coins they have no control over,” he said.
“They want to control and regulate their own coins. In one way, that is good because the unregulated market is full of scammers, and people who fall victim to them have very little recourse.
“On the other hand, if governments regulate crypto, it will give them far more control which takes away from the founding ethos of blockchain as virtual cash.
“After doing their best to ignore it for years, governments seem to have accepted that it is something they must live with.
“Out of that acceptance has emerged a desire to regulate and control the industry. Many long-term investors will be wary of that, but it is unlikely to change of travel the industry is going in.”
