If the UK is to capitalise on opportunities presented by Distributed Ledger Technology (DLT), then policymakers must ensure regulatory and banking-related challenges are overcome, according to a report from Digital Catapult.
Published on 20 November, Blockchain in Action: State of the UK Market, revealed three quarters (74%) of DLT companies cited regulatory uncertainty as the biggest challenge to growth, while over half (54%) had struggled to open a UK bank account. Further findings included that 71% of firms were generating revenue, with 74% having products ready to demonstrate. A majority were looking to opportunities of technology beyond cryptocurrencies and the financial sector.
To overcome these challenges and facilitate growth of DLT, the report recommended policymakers offer greater guidance on regulation around matters such as GDPR, stating it was key innovation was not thwarted by a lack of clarity. Furthermore, it called for greater cooperation between banks and DLT companies to ensure success in the UK and for greater visibility of DLT’s potential beyond cryptocurrencies and industries beyond the financial sector.