A recent report authored by Xavier Rolet, the former chief of the London Stock Exchange (LSE) has called for the adoption of cryptocurrencies and blank-check firms or SPACs by the UK to progress in the post-Brexit era. He said,
“All the relevant U.K. government agencies should be resourced to thoroughly understand cryptocurrencies place London and the U.K. at the center of a reputable and safe financial market.”
Both cryptocurrencies and Special Purpose Acquisition Companies (SPACs) have come out as the true gainers when the financial world is in shambles. Investors have rushed to invest in crypto and SPACs alike in 2020 when the stock market and government bonds didn’t remain a lucrative choice. U.S. SPACs raised a record $39 billion during the fourth quarter, more than 10 times the same period in 2019. On the other hand crypto industry grew into a trillion-dollar industry indicating the growing demand for these new asset classes.
Former LSE Chief Calls For Regulatory Alignment to Beat European Union
Rolet in his report also talked about the importance of regulatory clearance when it comes to the new asset class and called for aligning regulatory control with the US capital market and China to leave the European Union behind. However, despite the Brexit deal, Britain would still have several financial ties with the European Union which could prove to be a hurdle when it comes to regulatory unity.
Digital assets or cryptocurrencies started drawing mainstream attention when Bitcoin started to rise towards the end of October and by the start of the new year, it had already broken its previous ATH of 2017. 2021 saw institutions such as MicroStrategy, Tesla, Square Inc, and many other un-disclosed companies invest in Bitcoin.
The US is already looking to regulate cryptocurrencies positively to compete with China in the digital currency space while many other European nations have made a similar call. Thus, the demand put forward by the former LSE chief seems to be because of growing regulatory changes around the globe.