Web3 is back, again

The cryptoasset and blockchain industry has died a thousand times by now. The latest passing followed the FTX scandal, where, yet again, Web3 was pronounced unresponsive and without a pulse.  Behind-the-scenes there was another story to be told.

2023 has seen more innovation in the Layer 2 protocol space (helping reduce bottlenecks and increase transaction speeds through data and scaling), the launch of new DApps (decentralised apps, for the uninitiated) and some important regulatory milestones.

Here in the UK the Bank of England and the FCA both launched consultations around stablecoins, arguably a cornerstone for the future of digital money, and The Treasury launched its ‘Future Financial Services Regulator Regime for Crypto Assets’ consultation.

We also saw the appointment of a new City minister Bim Afolami, who has championed innovation and growth. “If you’re regulating a market, in any area, there’s no point having the safest graveyard,” the top Tory has warned.

The FCA’s crypto-advertising rules have also come into force, adding to the sense that there’s real momentum around the UK government’s goal of turning Britain into a global crypto hub with a clear regulatory landscape.

It was with that optimistic note that around 70 representatives from across the sector gathered at SEC Newgate on a wintery Wednesday night in London for CryptoUK’s Winter Drinks.

It may have been cold outside, but the markets have turned hot as Bitcoin and other major cryptocurrency coins have rallied heading into the end of the year. The sector has also seen major institutional tailwinds with French banking giant Societe Generale announcing a Euro-backed stablecoin.

With this good news lifting the sector’s mood, the main message of the night was collaboration – to foster new alliances and make new friends as we head into 2024, a year when the UK, US and India all expect general elections and the global macro-economic environment is expected to improve.

Who knows what’s next, but the cryptoasset industry could have another year left in the tank after all.