Why Edinburgh, Scotland Is Zumo’s Crypto Hub

Discover why Edinburgh is chosen as Zumo’s crypto hub, its rich computer science heritage, startup potential, and future expansion plans in Abu Dhabi.

Why Edinburgh, Scotland Is Zumo's Crypto Hub
Why Edinburgh, Scotland Is Zumo’s Crypto Hub (gattyimages)

Zumo’s Crypto Hub

In this edition of Crypto Founders on Crypto Hubs, CoinDesk senior editor Jeanhee Kim sat down with Nick Jones, the co-founder and CEO of Zumo, a digital-assets infrastructure platform.

Their conversation provides insights into why Zumo chose Edinburgh, Scotland, as its base of operations and the advantages it offers as a crypto hub.

What is Zumo?

Zumo is a digital-assets infrastructure platform that facilitates the entry of Web2 companies into the Web3 space. By focusing on security, usability, and financial inclusion, Zumo aims to bring crypto to a mainstream audience.

Zumo’s Edinburgh Connection

The Decision to Establish in Edinburgh

Nick Jones and his co-founder, Paul Roach, both relocated to Edinburgh for various reasons and decided to start their business there. Edinburgh, with its rich heritage in computer science, emerged as an ideal location.

The city’s university consistently ranks among the top three schools in Europe for informatics.

Furthermore, the launch of its first blockchain and AI accelerator in 2018 presented an opportunity for Zumo to participate in its inaugural cohort.

Edinburgh’s Startup Potential

Ranked as the second most vibrant startup hub in the U.K., Edinburgh offered a diverse talent pool, making it an appealing choice for Zumo. Moreover, the company opted to remain in Edinburgh due to the flexibility granted by the pandemic.

With only 5.5 million people in Scotland, the talent pool is relatively small compared to London. Edinburgh serves as a secondary hub for financial services in the U.K., resulting in high demand for skilled professionals.

Zumo’s Long-Term Plan

Regulatory Landscape and Brexit

Zumo considers the regulatory developments in the U.K. as a crucial factor in determining its long-term stay in Edinburgh. The company anticipates the U.K. to become a thriving digital-assets hub and hopes for faster progress in this regard.

While Brexit has presented numerous challenges, Zumo believes it may offer certain advantages, particularly in terms of operational freedom for digital-assets businesses. However, these benefits are yet to become visible.

Edinburgh’s Connection to London

Zumo acknowledges the close ties between Edinburgh and London, which are the two primary financial hubs in the U.K. The cities are well-connected, with numerous daily flights.

Zumo intends to stay in Edinburgh as long as the U.K. continues its trajectory of becoming a new global financial center,

leveraging the strengths of both traditional finance (TradFi) and decentralized finance (DeFi). The company recognizes London’s rich heritage and sees an opportunity to build upon it.

Expanding to Abu Dhabi

Zumo plans to target Abu Dhabi as a secondary regulatory hub this year. By establishing a presence in Abu Dhabi, the company aims to extend its reach into the Middle East and South Asia, just as it leveraged London as a gateway to Europe.

Choosing Abu Dhabi over Dubai

When considering the choice between Abu Dhabi and Dubai, Zumo’s focus on selling to traditional finance (TradFi) influenced its decision to prioritize Abu Dhabi. However, both markets offer significant opportunities, and Zumo believes either choice would be viable.

The alignment between Abu Dhabi’s TradFi ecosystem and its connections to South India played a crucial role in Zumo’s decision.

If Zumo were to transform into a business-to-consumer (B2C) enterprise, Dubai might be a more favorable option.

Regulatory Setup and Future Expansion

Zumo’s regulatory setup spans the entire U.K. The company’s FCA (Financial Conduct Authority) registered business is listed in Scotland, while its holding company is listed in England.

This configuration provides a level of regulatory clarity and acts as a hedge against potential regulatory implications resulting from Scottish independence.

Zumo maintains a standard regulatory structure without any unconventional arrangements in offshore locations like the Cayman Islands. As Zumo expands to Abu Dhabi and other regions, it plans to establish local entities to comply with regional regulations.

Challenges and Considerations

Talent Pool and Cost

One of the main challenges Zumo faces in Edinburgh is the relatively small talent pool available in the city. As a small town, it is difficult to find the top-tier talent required to drive the company’s growth.

Additionally, the limited talent pool comes with increased costs associated with attracting and retaining skilled professionals.

Uncertainty Surrounding Brexit

Zumo has operated within the industry throughout the Brexit transition period, and uncertainty regarding its outcome posed a potential risk.

However, as time passes, the company finds the future prospects more reassuring. Encouraging signals from political actors suggest that a future Labour government is unlikely to reverse Brexit, reducing the risk of disruption.

Read More

Unleashing the Power of Tradeonix Pro: A Comprehensive Review of Russ Horn’s Forex Trading System

Threads app: Instagram’s Twitter rival logged 5 million users in first hours

Slim Sounds Review: Weight Loss Sound Therapy That Works

Sydney Sweeney Totally kill With A Toned Booty In A Little Swimsuit On IG

Ice-T Slams ‘Weirdo’ Fans Criticising Wife Coco Austin’s Risqué Instagram Pictures

Ice-T Slams ‘Weirdo’ Fans Criticising Wife Coco Austin’s Risqué Instagram Pictures

HomeDesignsAi: Unlock Limitless Home Design Possibilities with AI Magic

Holistic Dog Behaviour and Training Best Online Course

Moringa Health Benefits For Men and Women, Side Effects

Conclusion

Zumo’s decision to establish its crypto hub in Edinburgh was driven by several factors, including the city’s computer science heritage and its status as the second-largest startup hub in the U.K. Despite challenges such as a limited talent pool and costs, Zumo remains optimistic about Edinburgh’s potential.

The company plans to stay in Edinburgh as long as the U.K. continues to develop as a global financial center and intends to expand its operations to Abu Dhabi to access the Middle Eastern and South Asian markets.

By leveraging the strengths of both traditional finance and decentralized finance, Zumo aims to position itself at the forefront of the evolving crypto landscape.


Disclaimer: The information on this news website is provided for general purposes only. We make no warranties about the accuracy, reliability, or suitability of the information.

Any reliance you place on such information is strictly at your own risk. We are not liable for any loss or damage resulting from the use of this website. Please verify the accuracy of information before making any decisions based on it.