28.10 / UK-Crypto & more

28.10 / UK-Crypto & more

Crypto in U.K.

"The substance here is to treat them [crypto] like other forms of financial assets and not to prefer them, but also to bring them within the scope of regulation for the first time," said Andrew Griffith

The markets bill – and by extension the stablecoin rules – was introduced during Sunak's time as finance minister in the Boris Johnson administration.

Inflation

True, the worldwide inflation of the 2020s does not yet rival the worst inflation crises of past decades. In the 1970s, annual price increases in the United States stayed above six percent for ten years, reaching 14 percent in 1980; inflation in Japan and the United Kingdom peaked at over 20 percent. For low- and middle-income countries, the early 1990s were even worse: more than 40 such countries had inflation rates above 40 percent, with some reaching 1,000 percent or more. Still, in 2021 and 2022, the global economy moved in a deeply worrisome direction as governments and policymakers belatedly discovered they were facing runaway price increases amid a war in Ukraine and other large-scale shocks.

For many startups this will be the first time they are going to position their business for a high inflation regime. Look below most the last decade was low rate and low inflation regime.

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Source: Bloomberg

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While it will have a direct impact on certain startups (think people buying less). This will also impact one of the biggest category of costs for startups i.e. Talent costs.

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Source: BBC

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Startup Work Environment

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