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Investors Run Away From British Banks To Malta

Oleg Koldaev, Catherine Lange

Bitnewstoday.com has already told about the peculiarities if the crypto market regulation in Great Britain, about ill-defined concepts and manipulations. “We hope to hear the news of the legal regulation before the Banks of England announces the plans for the protection of business, investors, and customers”, - our interlocutor, Landri NTAHE said. Humor helps us to live and irony – to survive. The English humor – not only to survive but to adapt.

To find out how the crypto industry is adapting to the English legal system, we have spoken to the managers of two firms working with digital assets and registered in the Foggy Albion. And our interlocutors, the managers of the companies, represent two sides of the digital business: the first one – game and recreational sphere, the second one – the financial.

“I am not the resident of Great Britain (our interlocutor is from Belgium – ed. note), but it was not a complicated process to register my company. I had to spend a few days and £150, - the CEO of a large gaming platform Fabrice ELFAZI says. – The main problem we face on the isles now goes beyond blockchain and the cryptocurrencies. We cannot open a bank account in Great Britain. Some of our customers are the gambling operators and the British law is very strict to them” (evidently, after British businessmen performed the benefits from cryptocurrencies as a prize to avoid taxes – ed. note).

Excessive severity of the law is compensated by its optional execution - this maximum works only in some countries of Eastern Europe. In Great Britain, laws are strictly executed. However, an excessively strict and yet biased legal regulation does not make the business climate favorable.

"I also know that most of the backbone banks are not interested in developing blockchain technologies and working with cryptocurrencies, - Fabrice ELFAZI continues. – I’ve heard about the blockchain companies whose accounts were closed down literally overnight".

If we consider the actions of the British authorities as an attempt to protect the rights and legitimate interests of the participants in the economic turnover from unreliable assets, what some economists consider cryptocurrency to be, it does not benefit the financial system as a whole.

"I believe that the introduction of blockchain and ICO technology does not pose a great danger for businesses that want to live in our era, - our second interlocutor, the founder and CEO of the BCB ATM network, Landry NTAHE says. - We see that there is very little time left before the global adoption of the cryptocurrency. Many governments already support and encourage ICO and blockchain. I believe that a clear legal regulation will positively affect the reputation of the cryptocurrencies, make them legitimate in the eyes of users. Therefore, of course, I will support the efforts of legislators to give them a more significant legal status. Moreover, it is necessary to try to exclude risks for investors ".

And, indeed, legal risks are one of the most costly parts of the financial business. The costs of escorting transactions grow every year, due to the complicating of the legislation in the world. Credit organizations are feeding the army of lawyers. In some cases, people are replaced by legal-tech. But it does not save much. Cryptoeconomy may also face similar problems.

"The key moment for the industry is, in my opinion, the consistency of regulation in the regions, - Landri NTAHE emphasized. - For example, small countries such as Gibraltar, Bermuda Islands, Venezuela and Liechtenstein view crypto and blockchain as a way to attract new capital. But business needs uniform rules of the game regardless of whether it uses digital technologies or not".

And yet is the English legal system convenient for the new economy that operates on nonmaterial assets? Should we wait for the escape of crypto investors from the British Isles?

"The regulatory framework is constantly changing (especially in the fintech space), and there is no absolute guarantee that a particular country will offer better legal conditions, - Landri NTAHE concluded.  - As a rule, states that have the enough stable economic, political and legal practice are a good basis for beginning entrepreneurs in the crypto industry".

 The legislative system of Great Britain is one of the oldest in the world. English justice holds sacred its traditions and treats even the complexes with care. But every day the world changes faster.

"Well, we are now considering alternative options for opening a bank account and transferring business to countries where the legislation is more flexible in regard to iGaming companies, such as Malta," - Fabrice ELFAZI said.

Law and economy cannot exist in different realities. Not only the convenience and comfort of the customers and the business climate but also the future of the Albion as a global financial center depend on how quickly the traditional institutions can adapt to new conditions.

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