The Startup Coalition recently shone a national spotlight on this incredible economic opportunity in Web3 and crypto. They estimate it could contribute a jaw-dropping £40 billion to the strength of the UK’s economy! The organization has been working to create models that encourage the responsible development of Web3 technology and provide a pathway for startups to pursue decentralization. This call to action comes from increased concerns. A common theme from the discussions has been a feeling that the UK’s current regulatory environment is killing the opportunity of Web3 companies.

Web3, frequently discussed in concert with crypto, is a novel, decentralized phase of the internet that will require the creation of suitable infrastructures. The introduction of mini-apps into the Soneium blockchain ecosystem serves as a strong example of pushing Web3 adoption forward. The Startup Coalition, previously the Coalition for a Digital Economy (Coadec), raises an important point. They caution that the UK’s counterproductive and opaque decentralized government regime may prevent startups from truly adopting Web3.

Marcus Foster, head of policy campaigns at Startup Coalition, emphasized the value of decentralization with respect to Web3. He further pointed out that the US has a clearer regulatory playbook when it comes to cryptoassets that would appeal to Web3 firms. This makes the UK at risk of missing out on the economic dividends that come with being early adopters of this exciting new technology.

"We've laid out the blueprint, now it's up to the Government to take it forward to unlock the potential £40billion we know is there." - Marcus Foster, head of policy campaigns at Startup Coalition

For more information about the Startup Coalition, the policy voice for all Britains technology-led, High Growth startups and Scaleups – including Web3. They advocate for policies to be implemented that will encourage Web3 development to flourish in the UK. This is a good fit with the government’s stated goal of boosting economic productivity. The trade group argues that compared to other regulatory environments, startups would be better suited for success in the US due to its robust regulatory framework. If the UK fails to respond, this has the potential to stifle Web3 development in the area.

"The Government is rightly using any levers it can to generate economic growth, in line with their core mission. Our report proves that crypto and Web3 can make a huge contribution to our economy – but only if action is taken now to allow startups to decentralise." - Marcus Foster, head of policy campaigns at Startup Coalition