- There is a growing divergence between crypto policy in the U.S. and abroad.
- As the gap widens, a16z is now looking abroad, particularly to the U.K.
- British Prime Minister Rishi Sunak has welcomed the development.
While United States financial regulators appear to be clamping down on the crypto industry, other regions like the United Kingdom, the European Union, Asia, and the Middle East seem to be opening up.
As this divergence in policy grows, crypto businesses and investments are beginning to look abroad. In the latest instance, venture capital giant Andreessen Horowitz (a16z) has revealed plans to launch its first international office in the U.K.
a16z to Set Up Shop in the U.K.
In a blog post on Sunday, June 11, a16z announced that it was launching its first office outside the U.S. in London, expressing confidence in the U.K.’s goal of becoming a crypto hub under Prime Minister Rishi Sunak‘s administration.
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"We have been working with policymakers and regulators across the globe, and during our discussions it has become clear that the UK government sees the promise of web3, with Prime Minister Rishi Sunak suggesting the UK can become a hub of web3 innovation," a16z wrote announcing its decision.
The new office, scheduled to open later this year, will be led by a16z General Partner Sriram Krishnan. As part of the move, the firm also revealed plans to hold its next Crypto Startup School accelerator program in London while declaring an interest in grooming talent for the industry through blockchain clubs at universities.
a16z also announced a $43 million investment in Gensyn, a U.K.-based startup building a blockchain marketplace for artificial intelligence computing power.
In a written statement responding to a16z’s decision to open an office in the U.K., Sunak asserted that the move was a nod to the U.K.’s strong academic institutions, talent pool, and business-friendly environment while reiterating his desire to continue on the path to transforming the country into a hub for Web3.
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The Sunak administration’s clear support for the crypto industry starkly contrasts with the growing uncertainty the industry faces in the U.S. This clarity of direction appears to be paying off, as crypto ownership in the U.K. has doubled in the past year.
On the Flipside
- a16z asserts that it “will remain heavily invested in the U.S.”
Why This Matters
a16z is the largest venture capital firm in the world, with about $35 billion in assets under management. Its expansion into the U.K. reflects its continued belief in blockchain technology’s potential and the country’s potential to become a hub for the nascent market. At the same time, the timing of the move further highlights the trend of crypto-focused businesses looking abroad.
Read this to learn more about how the lack of clarity in the U.S. may be driving firms abroad:
U.S. Crypto Exodus Continues? Gemini Tips Ireland as European HQ
Europe’s crypto regulatory framework has passed another milestone. Find out more:
MiCA Published in Official EU Journal—Here’s What It Means
