In the latest blockchain news on our DC Forecasts crypto news site, we have a report that shows that the regulatory uncertainty is a major concern for the distributed ledger technology firms in the country.
According to the research conducted by a digital innovation agency named Digital Catapult, 75% of the blockchain firms in the United Kingdom said that regulatory issues were among the top concerns, surpassing other issues such as access to technical, business or legal expertise.
The regulatory challenges include the General Data Protection Regulation (GDPR) issued by the European Union, unifying the regulatory landscape regarding the use and storage of personal data and a sticking point for firms that use permissionless since the storage of data is not limited to any one particular geographical location.
As the report titled ‘Blockchain in Action: State of the UK Market’ noted:
“This legislation raised concerns for companies using permissionless, public blockchains, which are open to anyone regardless of location, and where full copies of the database are replicated across all of the nodes participating in the network, making it impossible to selectively limit where the data goes.”
On top of this, the GDPR empowers citizens to delete their personal data at any point and this is in conflict with the nature of permissionless public blockchains where data becomes immutable once recorded.
“This uncertainty was raised many times by the companies consulted, as they were unsure whether they should conduct an ICO in the UK or allow UK citizens to participate given the current regulatory landscape.”
The regulatory uncertainty has also affected many relationships between blockchain firms and traditional financial institutions. In the survey which polled 264 DLT firms, 54% of them indicated that they faced difficulties opening a bank account with the firms which were hard hit being those dealing with cryptocurrencies.
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