Venture Capital Firm Expands To UK, Says Crypto Needs Clear Regulation
Andreessen Horowitz (a16z), a venture capital company in the US, says it is expanding to the UK because crypto regulations are clearer there.
In a new announcement, Chris Dixon, who started Andreessen’s $7.6 billion a16z crypto fund, says that crypto can only work if governments set clear rules for digital assets.
The news comes just days after the U.S. Securities and Exchange Commission (SEC) sued Binance and Coinbase, the two biggest cryptocurrency platforms in the world, for 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.”
The news says that a16z will open its first office outside of the United States in London later this year. This will be the company’s first office that will focus on crypto startups. Sriram Krishnan, who is a general partner at the company, will run the new office. It will also be in charge of projects to help crypto grow in the area, such as starting a Crypto Startup School and helping blockchain clubs at local colleges.
In a statement, British Prime Minister Rishi Sunak praised the official opening and said that his government is working hard to make the UK a global hub for web3.
“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 the UK’s crypto regulations need “more work,” but he praises the country for being willing to work with the industry to create policies that encourage startups to pursue decentralisation.
The announcement came after the Crypto and Digital Assets All Party Parliamentary Group (APPG) released a report saying that the UK has between a year and a year and a half to come up with clear crypto regulations if it wants to lead the global digital asset market.
