UK Crypto Industry Forecast 2023 – UKTN

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The crypto-asset industry has been no stranger to scandals, crises, and general unpredictability since its rise to prominence. In 2022, titans like FTX, Three Arrows Capital, and Tether either struggled with major losses or collapsed completely. The market as a whole lost significant value and there was an almost endless line of celebrities claiming to understand NFTs.

While the industry has undoubtedly taken a beating this year, there are still over 200 blockchain companies in the UK looking to make 2023 a more positive year. UKTN spoke to some members of the UK crypto community to see what they think the future of the industry is.

Lane Kasselman, President, Blockchain.com

I expect the global economic downturn to keep crypto prices muted in 2023, Kasselman told UKTN, we should expect to see major players continue to thrive and take market share from platforms. forms that have now disappeared.

Kasselman also predicted increased M&A activity in 2023, but with increased due diligence scrutiny. After all, crypto remains the biggest investment sector in 2022, overtaking both fintech and biotech, according to Pitchbook.

And finally, I expect to see more investors moving funds into self-custody, Kasselman added. After FTX, we saw record volume moving from our custodial accounts to self-custodial accounts. The week of the FTX collapse, we saw an increase of 245% and 88% the following week.

Thomas Tudehope, Global Head of Public Policy, Luno

For Tudehope, the upcoming crypto regulations will be the industry’s flagship feature next year.

In years to come, we will look back to 2023 as the year cryptocurrency regulation transformed the industry for the better, he said.

The industry has never been under such intense media scrutiny, so expect to see regulation coming quickly, with real force, as observers demand increased consumer confidence and protection.

With regard to the UK, Tudehope noted that a major milestone was reached this year, when MP Andrew Griffith and Her Majesty’s Treasury tabled amendments to the Financial Services and Markets Bill which have paved the way in the UK to introduce a comprehensive and comprehensive regulatory regime for crypto.

He also acknowledged the recently appointed Prime Minister’s pro-cryptocurrency views as a positive sign for crypto in 2023. Earlier this year, Sunak announced his ambition to make the UK a global hub for crypto technology. crypto assets.

2023 will be a financially challenging year for the UK and other global markets, but with the UK firmly entrenched as a global fintech hub, now is the right time for the government to act. seriously about crypto regulation.

Jay Gujral, Managing Director, UK, Block Dojo

Gujral told UKTN that when tighter regulation hits the industry, it will actually affect the venture capital world as deals will require a lot more due diligence.

He said that despite the damage done to the industry by the highly publicized collapse of FTX, the crypto will recover, but it will take time to mend this bridge.

He added that in 2023, more and more parties will realize that the price of crypto is irrelevant and they need companies and founders to be built.

You can see this with a number of networks starting to launch their own accelerator programs to attract entrepreneurs with large sums of money. But, rather than subsidies, they ensure companies will build properly and spend the money wisely.

Alan Vey, CEO, Aventus Network

Looking back to 2022, Vey noted that while the year was less promising in rising crypto value than previous years, we’ve seen a growing number of companies exploring proof-of-concepts to link DeFi and traditional finance, while also seeing governments explore central bank digital currencies. Vey thinks this will likely continue into 2023.

Vey also predicts the acceleration of a philosophical debate that has plagued the blockchain industry as it has grown into the mainstream.

The crux of the problem with blockchain for many businesses is the lack of identity, Vey said.

Even if something is decentralized, there must be something to represent its identity and trace it in extreme circumstances to reduce fraudulent activity.

This will, however, likely lead to some expected backlash on digital identity management. Trying to force a centralized ideology on blockchain, whose whole modus operandi is decentralization, has been another thorn in the blockchain space this year.

Vey, however, suggested that the sharp decline in the value of many crypto-assets following the collapse of FTX could be positive for the industry.

The current fallout from FTX and Binance’s situation has resulted in blockchain assets currently being cheaper, making it a great opportunity for traditional institutions to enter this market and pilot these products in their frameworks. existing regulations and compliance.

We’ll likely see a lot more of this happen, which will further legitimize the industry, but could simultaneously undermine the decentralized nature of blockchain’s core USP.

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