Former London Stock Exchange (LSE) Chief of Staff Xavier Rolet claims that for London to regain its position as a business leader, it needs to embrace the two trends sweeping global markets: cryptocurrencies and Special-purpose Acquisition Companies (SPACs).
Co-authored with Shore Capital Head of Research Clive Black and Senior Political Advisor Matthew Elliot, the Bloomberg report emphasized the importance of crypto in a rapidly shifting economy.
It called for the resources of all “relevant U.K. government agencies” to properly understand and utilize crypto. It noted the significant regulatory changes needed for London and ultimately the U.K. to be in a position deemed “a reputable and safe financial market.”
According to the report, allowing investors the freedom to work with cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) would provide a quick way for Britain to regain its financial footing in a post-Brexit world.
While these claims are the co-authors’ opinions, they are based upon facts and data, citing the success of SPACs in the United States where regulations are less stringent. U.K. regulations, though, have prevented investors from engaging with the same enthusiasm as those on Wall Street.
Experts Embrace Crypto
This is not the first time in recent months that a financial expert has cited the benefits of embracing cryptocurrencies for the U.K. In a recent op-ed, David W. McMillian, a Professor of Finance at the University of Sterling made a similar claim.
He argued that being free from the EU could enable the U.K. to extend more leniency to its country’s investors, allowing them to engage more freely with cryptocurrencies. He maintains that reshaping regulations in this way would be more beneficial to the U.K. economy than further deregulatory measures.
The regulatory controls that Rolet deems necessary for the U.K. closely mirror those of the U.S. and China. Taking such measures and embracing crypto could potentially help strengthen the U.K.’s national economy in the short-term.
Additionally, avoiding further deregulatory measures could be wise for the U.K.’s leaders, as it may further strain relationships within the EU.