Andreessen Horowitz to open London office as crypto push goes international

High-profile venture capital firm Andreessen Horowitz has chosen London for its first international office as it plans to build a UK crypto outpost.

The much-watched Silicon Valley firm said in a blog post on 11 June that it had been in discussions with a number of policymakers and regulators as it looks to expand in the digital assets space.

“It has become clear that the UK government sees the promise of web3,” the post said. “More specifically, the UK policymakers and regulators are taking an approach that is uniquely tailored to blockchain and digital asset regulation.”

Andreessen Horowitz shot to fame with bets on social media and fintech businesses like Facebook, Twitter and Stripe. However, the firm is also a major digital assets investor, backing the likes of Coinbase, and now has some $7.6bn of its $35bn in assets tied to the crypto and blockchain start-up space.

But Coinbase is just one of the firms that has been in the crosshairs of US regulators in recent weeks, as the Securities and Exchange Commission goes after both exchanges and their founders over alleged securities law violations.

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Chris Dixon, who heads up Andreessen Horowitz’s crypto investments, said the California-headquartered firm had looked to London because “the UK is on the right path to becoming a leader in crypto regulation” and has “deep pools of talent, world-leading academic institutions, and a strong entrepreneurial culture”.

Other international financial regulators such as in Abu Dhabi have also been early adopters of crypto frameworks and friendly to the sector while trying to weed out some of the riskiest firms, the chief executive of the region’s Financial Services Regulatory Authority told Financial News earlier this year.

Dixon said his firm is not ditching the US, however, and will remain “heavily invested”.

“We continue to be committed to working with US policymakers and regulators to push for more regulatory clarity for crypto startups here,” he wrote.

General partner and former Elon Musk adviser Sriram Krishnan is set to lead the new City office, which is due to open later this year.

Prime Minister Rishi Sunak said the UK “must embrace” new technologies like blockchain and was “thrilled” Andreessen Horowitz has picked London due to its “strong competitive business environment”.

Despite criticism over its recently aborted plans to launch its own non-fungible token, the UK government has been attempting to pitch itself as a crypto hub under Sunak’s leadership.

UK watchdog the Financial Conduct Authority remains sceptical of crypto investments, however.

The majority of digital assets firms have failed to receive authorisation under its money-laundering regime, while new rules set to come into force in October will crack down on how crypto investments can be marketed.

Financial News recently rounded up the Twenty Most Influential Women in Crypto for 2023. Have a look at the list here.

To contact the author of this story with feedback or news, email Justin Cash