Brexit Uncertainty Hits Bitcoin and Blockchain Adoption in The United Kingdom

20. Sep 2019 Posted by Akolkar B on News

Britain’s exit from the European Union - Brexit has caught the attention of the world as the UK government is currently formulating measures for a smooth departure without hampering the economy much.

Besides the global businesses who are carefully watching the turn of events, Brexit is likely to have impacted Bitcoin adoption and blockchain development taking place in the country.

As reported by Crypto Daily, HM Revenue & Customs (HMRC) the UK tax and finance office has agreed to pause any cryptocurrency developments or blockchain-based research work until Brexit negotiations are complete.

Over the last few months, the HMRC has also been looking into ways of using the blockchain technology to make robust immigrations and border policies. Besides, the Bank of England has also been researching on a stablecoin project and how it can impact UK’s economy going further.

Another report from the Civil Service World mentions that “Despite a successful proof-of-concept exercise, HM Revenue and Customs has suspended work to deploy blockchain technology at the UK border until after the country’s exit from the European Union has been completed.”

Commenting on this matter, Mel Stride, the Financial Secretary to the Treasury has said:

“HMRC is working with the cross-government Future Borders Program to progress the pilot. But implementing blockchain at scale would require significant further work by HMRC. Further work on the application of Blockchain to Authorized Economic Operator status is deferred until after the UK leaves the EU, when timescales and cost will be revisited.”

There are many financial and structural changes likely to come to the United Kingdom once its leaves the European Union. Thus, the country is looking to halt any project which can even have a slightest of alignment with the EU.

Well, the slowdown in Bitcoin and crypto adoption is certainly not encouraging for the crypto industry, but there’s no feasible option at this stage than to sail though this boat.