Andreessen Horowitz, a distinguished enterprise capital agency, has introduced plans to wind down its UK operations, citing U.S. President Donald Trump’s sturdy pro-crypto coverage momentum as a driving issue.
The choice marks a shift in focus again to the U.S. market because the administration indicators vital help for the cryptocurrency business.
Anthony Albanese, the chief working officer of Andreessen Horowitz’s crypto arm, defined the transfer in a January 24 submit on X (previously Twitter).
Andreessen Horowitz Stays Assured within the UK
Whereas acknowledging the passion for crypto adoption within the UK, Albanese stated the agency stays dedicated to supporting entrepreneurs worldwide, together with these within the UK.
“This doesn’t change our confidence within the UK’s rising function in crypto and blockchain,” he famous, including that Andreessen Horowitz is able to help with the UK’s ongoing crypto efforts.
The agency had opened its London workplace in 2023, praising the UK as a secure enterprise setting.
Nevertheless, the political panorama has shifted since then.
Following the Labour Social gathering’s victory within the July 2024 elections, Prime Minister Keir Starmer’s authorities has introduced plans for a complete crypto regulatory framework by 2026, alongside a 50-point synthetic intelligence motion plan geared toward boosting financial progress.
In distinction, the U.S. beneath Trump’s management is transferring shortly on crypto-related initiatives.
Since taking workplace on January 20, Trump has signed an govt order to discover stablecoin laws and set up a strategic crypto reserve.
We’re excited by the passion for crypto constructing and adoption within the UK and are inspired by the latest constructive coverage bulletins and actions. Nevertheless, we’ve got chosen to give attention to the US given the brand new administration’s sturdy coverage momentum and can due to this fact be closing…
— Anthony Albanese (@AAlbaneseNY) January 24, 2025
The U.S. Securities and Alternate Fee (SEC), now with three commissioners after the departure of Gary Gensler, has additionally introduced a crypto process power to develop a regulatory framework for the market.
Andreessen Horowitz co-founder Marc Andreessen has been a vocal supporter of pro-crypto insurance policies, contributing over $5 million to political motion committees backing Trump’s 2024 marketing campaign and $22 million to the Fairshake PAC, which advocates for crypto-friendly congressional candidates.
Andreessen additionally served as an advisor on Tesla CEO Elon Musk’s authorities effectivity committee beneath Trump, which has already confronted authorized challenges following the inauguration.
UK Introduces Crypto Laws
In September, the UK authorities launched a brand new invoice geared toward clarifying the standing of digital property, together with non-fungible tokens (NFTs), cryptocurrencies, and carbon credit, as “issues” and “private property” beneath the nation’s property legal guidelines.
The UK has been among the many nations which have ramped up regulatory efforts following some high-profile bankruptcies final 12 months.
The Monetary Conduct Authority (FCA) oversees crypto actions, specializing in anti-money laundering measures and shopper safety.
Final 12 months, the FCA carried out new guidelines that require crypto companies to register with the monetary regulator and have their advertising and marketing supplies authorized by an FCA-authorized agency.
Key updates embody exchanges offering clear warnings to clients in regards to the dangers related to crypto investments.
The FCA has warned that failure to conform may end up in legal costs, together with limitless fines and as much as two years’ imprisonment, for home and abroad exchanges working within the UK.
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