The UK’s crypto community has a reason for optimism with the new Labour government, according to Harry Horsfall. Backed by a large parliamentary majority, the Labour government is seen as potentially more decisive in pushing policies favourable to the Web3 industry. Horsfall, CEO of Flight3, which will host the Zebu Live Conference in October, also cites the presence of Web3-interested individuals among party leaders as another positive sign.
UK Aiming to Be a ‘True Web3 Hub’
However, Horsfall acknowledges some familiar challenges the Labour government will likely face in tackling Web3 issues. One is the apparent mismatch between the speed of Web3 innovation and the pace of regulation. The knowledge gap within the government and traditional financial institutions’ reluctance to support the industry are also potential hurdles, the Flight3 CEO says.
Despite these challenges, Horsfall remains confident that the UK can become a “true Web3 hub” with the right regulatory framework and continued support for innovation.
In written responses shared with Bitcoin.com News, Horsfall expressed hope that the Zebu Live Conference will serve as a “breeding ground for innovation, collaboration, and fresh ideas.” He believes hosting the conference will also contribute to the push for a regulatory framework that fosters future Web3 growth in the UK.
Below are Horsfall’s answers to all the questions sent.
Bitcoin.com News (BCN): The crypto community in the United Kingdom (UK) is highly optimistic about the future with a Labour government in power. What do you think is driving this optimism, and how do you think the new UK government will influence the Web3 space?
Harry Horsfall (HH): Notably, the UK has always been a global financial hub, making it a natural fit for the step ahead – the Web3 revolution. We have world-class universities, some of the best talents, and access to abundant capital. Strategically, we are in the best time zone – GMT allows talking to people from China and the U.S. on the same working day. Lastly, with the reliability of our legal system and the trusted environment it creates, London attracts international investments.
The former government was very cautious towards blockchain technology, and, therefore, even with the best intentions towards making the UK a Web3 hub, there are yet more steps to take in that direction. Luckily, with its strong majority, the new Labor government seems more decisive to push through policies swiftly.
Leaders like Andy Burnham, the Mayor of Manchester, are not just genuinely passionate about Web3. They recognise its importance in retaining top talent and preventing revenue from shifting to places like Dubai and Switzerland. Our primary aim should be to protect British businesses and position the UK as a global leader in this space.
BCN: Like most other jurisdictions, the U.K. has yet to establish a dedicated regulatory framework for cryptocurrencies. This doesn’t mean there haven’t been attempts to create a conducive environment for the crypto industry without hindering innovation. However, there have also been challenges. Can you identify the obstacles that the digital assets industry has faced in the U.K. over the years that could impact the new government’s potential initiatives to regulate the industry?
HH: The slow pace of regulatory development is clearly the key challenge for the UK digital assets industry. The regulatory framework can’t cope with the pace of Web3, which often turns the best intentions into another obstacle. Take, for example, the case of FCA working on implementing new advertising regulations for crypto, which are sensible and aimed at protecting consumers with clear disclaimers. However, the slow rollout of licenses and approvals by the FCA has been a significant issue.
On the bright side, we have politicians like Sarah Green, who actually want to understand how the industry works instead of trying to integrate roughly outdated legal frameworks. With that being said, the second challenge is still a knowledge gap within the government. They want to help and support innovation but don’t fully understand the nuances of Web3 technology. We are in a situation where many centralised Web3 businesses want to comply, but without clear regulations to follow, they often find themselves in a loop of self-regulation. At the very least, it’s impossible to follow the rules when there are no rules to follow.
Lastly, traditional financial services such as banking and insurance are still hesitant to engage with the crypto industry, making it difficult for Web3 businesses to operate smoothly. The new government will definitely have to address this to foster a more supportive and innovative environment for digital assets.
BCN: Flight3 is scheduled to host the Zebu Live Conference in London from October 10 to 11. Considered by many to be the U.K.’s largest Web3 event, it is expected to draw thousands of attendees and feature hundreds of speakers. What are your expectations for this conference, particularly regarding the potential for collaboration between the government and the crypto industry?
HH: Zebu Live is an incredibly exciting event for us, marking the culmination of over a decade of hosting events. I remember organising my first Bitcoin Meetup in 2014, which hosted just 30 people. Fast forward to today, and we’re expecting 3,500 people in a warehouse, with over 5,000 attendees across the week and 50 side events. It’s amazing to see how far the Web3 space has come, with attendees ranging from major brands to startups and established players in the industry.
My primary expectation for the event is to foster connections. It’s about bringing together like-minded enthusiasts and communities within the UK Web3 ecosystem. There’s a shared passion driving everyone involved, and I believe that energy will be felt throughout the event. Additionally, I’m hopeful that this event will help bridge the gap between the crypto industry and the government, encouraging more dialogue and synergy.
BCN: Industry behemoths like Coinbase and Solana have partnered with you for this year’s conference. With Coinbase at the forefront of the Stand with Crypto UK initiative, advocating for a clear and supportive regulatory framework, what are the expected takeaways from this conference, especially for crypto personalities and projects that you expect to attend this event?
HH: I’m incredibly proud to be a part of the force moving the Stand with Crypto UK initiative forward. It’s a grassroots movement highlighting the best projects and brands in the UK, and we’ve seen thousands of signups within the first few weeks. Coinbase, as a pioneer in our industry, has set a great example of good governance, and having them as a partner for Zebu Live is an absolute honour. Every day, I wake up excited to see how far we can take this!
In addition to Coinbase, there is Superteam, the talent layer of Solana and another key player in the UK Web3 space, that will also be contributing to the event. With these collaborations, I expect the conference to provide a platform for crypto enthusiasts and projects to connect and share insights.
We’re also fortunate to have many other key partners on board, such as Alkimi, who are revolutionising on-chain advertising, and Goliath Ventures, an up-and-coming fund that has already seen great success despite being under the radar. Their involvement, along with the participation of larger players like Coinbase and Solana, is what makes this event so special.
Additionally, we have some incredible speakers lined up, including Steven Bartlett, one of the UK’s most prominent entrepreneurs, and Raoul Paul from Real Vision. With so many influential voices, we expect the conference to be a breeding ground for innovation, collaboration, and fresh ideas.
For attendees, especially crypto personalities and projects, the key takeaway will be the chance to connect with industry giants and fellow innovators, gain valuable insights, and, most importantly, continue pushing for a regulatory framework that supports the future growth of Web3 in the UK.
BCN: From a general standpoint, what is your assessment of the U.K.’s potential to become a global crypto hub, and how might this development influence the broader cryptocurrency and Web3 sectors?
HH: It’s absolutely possible for the UK to become a global crypto hub, and I’m working to make it happen. We already have all the key ingredients: world-class talent, access to capital, a strong legal framework, and a strategic geographical location. However, it’s about maturing as an industry and constructively communicating the next steps.
If we look back at the 2017 bull market, the crypto landscape was heavily influenced by China and India, with a lot of uncertainty and fear around government regulation. But today, the race has shifted, and the Web3 sector has obviously matured. Now, countries are competing to attract talent and investment by offering incentives and clearer regulatory frameworks. In a globalised world, if a country falls behind in this race, talent will naturally move to places where it’s easier to build and innovate.
The UK has a real opportunity here to set the standard and become a leader in the space. If we can get the regulatory framework right and continue fostering innovation, it will attract more talent, capital, and projects to the UK, solidifying its place as a true Web3 hub.