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Amid increasing regulatory uncertainty in the United States, many cryptocurrency firms based in the US have been eager to expand.
The latest firm to announce its expansion plans is a16z crypto, the cryptocurrency investment subsidiary of VC Andreessen Horowitz.
The company has announced that it will launch its first international office in London, just a few days after the US SEC filed a lawsuit against two major cryptocurrency exchanges.
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The company hinted that the reason for its move was the extreme regulatory atmosphere in the US.
Expansion Moves Amid Heightened Regulatory Uncertainty
This development comes a month after a16z crypto’s “State of Crypto” report, which discussed the declining activity of cryptocurrency in the United States.
While the company did not explicitly state that the regulatory war against cryptocurrency was the driving factor behind its expansion, its statements pointed in that direction.
The report stated that “crypto can only thrive with a clear regulatory regime that provides an open pathway for startups while protecting consumers from fraud and manipulation.”
The UK has become more attractive to cryptocurrency firms due to its efforts to secure a legal framework for cryptocurrency.
Companies such as Coinbase and Ripple have already opened new offices in London due to the ongoing regulatory strife in the US.
In its “State of Crypto” report, a16z crypto noted that banning new business models or technologies compromises American values and drives innovation and jobs overseas.
The company is not the first to issue such a report. Coinbase, Ripple, Binance, and other crypto-focused firms, including top industry leaders, previously raised similar concerns.
In its latest announcement, a16z noted the drawbacks caused by the “casino culture” that now exists in the cryptocurrency industry.
The company said it is working with policymakers and regulators around the world to address the issue.
“We need regulatory frameworks that facilitate decentralization, not impede it,” said a16z’s leader, Chris Dixon. “UK policymakers and regulators are taking an approach uniquely tailored to blockchain and digital asset regulation,” he added.
