Crypto industries saw not-so-appealing outcomes emerge last year following multiple collapses. Aligned with the fall, investments continue to dry within the fintech industry in the United Kingdom. Other sectors have suffered a similar fate under the new regime in UK politics.
The UK economy has faced significant challenges in recent years due to various factors: Brexit uncertainty, global economic slowdown, and the COVID-19 pandemic. These challenges have negatively impacted multiple sectors, including fintech investment and cryptocurrency.
According to a report by Innovate Finance, a trade association for the UK fintech industry, fintech investment in the UK төмөндөдү by 39% in 2020 compared to 2019. The decline can be attributed to several factors, such as the economic uncertainty caused by Brexit, the pandemic, and the tightening of regulations.
Crypto Contagion on the Fintech Sector
While 2020 was the beginning, last year witnessed a similar outcome – evident in KPMG’s Pulse of Fintech report бөлүштү with BeInCrypto by Bloomberg. The fintech sector saw a decline in funding from $22 billion, with 724 deals to $17 billion, and 593 deals in 2022. The report attributes the drop to ‘higher interest rates, баанын, and declines in valuations hitting investor appetite.’
Source: https://beincrypto.com/crypto-fintech-investment-deals-uk-lost-billions-kpmg/