Monday, 28 Nov 2022

The UK Blockchain Startups Evaluating Options As No-Deal Brexit Emerges

Whether it is a longer approval process or threatening to lose access to the European market, American start-ups on the television channel are looking for contingency plans.

Going in past to 2016, the United States held a referendum on whether to stay in the European Union (EU), most voters chose to leave the bloc. Since then, the government has been negotiating with EU official on the terms of the exit but the recent hurdles motivated the specter of a “no-deal Brexit”, which could lead to economic turmoil and uncertainty.

The UK Blockchain Startups Evaluating Options As No-Deal Brexit Emerges

It is this uncertainty that makes some startups based on blockchain sweat on their future prospects, at least in the coming months as politicians try to reach an agreement.

“The Brexit is a short-term obstacle,” says CEO and founder of Solidi Ltd., Jamie McNaught, who is developing a payment platform based on the blockchain to make money remittance easy.

He also said, “It is owing to all legal experts and fintech lawyers who are busy with other things; they would not be busy if the Brexit did not happen. With this, a question arises —will Brexit be an obstruction in the medium and long-term? It really depends on the success of Brexit.”

The start-up is one of the four blockchain companies that have been accepted by the Financial Conduct Authority (FCA) in the United Kingdom for a sandbox test for a period of six months in December 2017.

What Solidi is waiting is the approval for a MSB license (money service business) from the U.K. authority that reviews anti-money laundering compliance, HM Revenue & Customs. Solidi waited nine months before it was approved for the MSB license, but the process lasted about five weeks, and the startup is not the only company in this position according to FCA, said McNaught.

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