Andreessen Horowitz to open office in London, could become crypto hub

LONDON – Andreessen Horowitz opens his first office outside the United States in London, a venture capital firm announce Monday.

Andreessen Horowitz, a Silicon Valley venture capital firm backing leading technology companies from Airbnb to Coinbasesaid it is looking forward to capitalizing on what it views as a more welcoming environment for crypto entrepreneurs in the UK. The company believes the UK will become a world leader in crypto, blockchain and cryptocurrency.

The United States has been cracking down on the cryptocurrency industry recently, with the US Securities and Exchange Commission announcing lawsuits against crypto giants Binance and Coinbase last week. Essentially, the SEC argues that many tokens should be classified as securities, which could subject them to stricter oversight and transparency requirements.

The UK earlier this year also proposed its first official regulations for the cryptocurrency industry, in an effort to clamp down on practices in the wake of the collapse of FTX, a once $32 billion cryptocurrency exchange. Many cryptocurrency investors say this will provide more clarity, especially as they face growing uncertainty in the US.

“The PM’s leadership is important, but we’ve seen a wonderful openness to the promise of technology, as well as a strong interest in any regulatory regime that comes online, with an eye toward consumer protection,” Brian Quintens, Andreessen Horowitz’s chief policy officer, told CNBC in an interview.

“Frankly, I don’t think this current administration in the US is doing that either – it’s a moment in time when the UK is acting wisely and quickly, but aggressively.”

He will be moving to London to head the company’s office there, said Sriram Krishnan, the former Twitter employee who joined Andreessen Horowitz as general partner.

Andreessen Horowitz also plans to launch the first cryptocurrency startup school in the UK in a bid to identify future talent in crypto and Web3. The company launched a school to train entrepreneurs to build blockchain and cryptocurrency companies in 2019.

Andreessen Horowitz has been one of the most active investors in crypto and Web3, backing startups ranging from crypto-based sports collectibles trading game Dapper Labs to non-fungible token marketplace OpenSea.

But it has felt the chilling effects of the downturn known as the “crypto winter” in the past 18 months, after major crashes like the stunning bankruptcy of FTX. It was Andreessen Horowitz Not an investorbut many competitors, including Sequoia, were.

The company’s commitment to opening up a presence in the UK indicates a longstanding belief in the cryptocurrency market, at least outside the US

“As far as the US is concerned, there is enormous uncertainty here – that’s a good word – there are a lot of opportunities to create more uncertainty that isn’t embraced,” Quentins told CNBC.

“We see regulation by law enforcement that does nothing to understand the benefits of technology or embrace the entrepreneurs and innovators trying to build the next iteration.”

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