Former London Stock Exchange CEO Urges UK Government to Embrace Cryptocurrencies

Xavier Rolet, the former CEO of London Stock Exchange Group, has urged the UK government to embrace cryptocurrencies and Special Purpose Acquisition Companies (SPACs) to succeed in the post-Brexit era. 

Bloomberg reports today that Rolet suggested in a paper co-authored by Shore Capital’s head of research Clive Black and the broker’s senior political adviser Matthew Elliott, who ran the Brexit campaign. 

The trio noted that the government should embrace these investment vehicles because of opportunities associated with them in recent times, leading to massive adoption globally. 

According to the paper, SPACs in the U.S. successfully raised a whopping $39 billion in the Q4 2020, a ten times higher milestone than what was recorded in 2019 for the same quarter. 

Rolet and his colleagues blamed the UK and its unfavorable regulations toward SPAC and digital currencies as one reason why these investment vehicles have not blossomed in the London markets. 

Notably, the paper advised that all relevant UK. government agencies be equipped with the necessary materials to understand cryptocurrencies. 

The report also called on the UK government to establish regulations for these investments that will “place London and the UK. at the center of a reputable and safe financial market.” 

Furthermore, the trio advised that London align its regulatory control of capital markets with China and the U.S., adding that the UK should be swiftly changing regulations than the European Union (EU).   

The UK Steps Up Regulation For Its Crypto Industry

The U.K. has been involved with cryptocurrencies over the years and has made significant moves to analyze crypto investment and its wholesale use cases in the economy. 

The government first launched a cross-authority taskforce in 2018 to assess the effect of a cryptocurrency market in its economy and subsequently appointed the Financial Conduct Authority (FCA) to oversee the emerging industry.

Currently, the government has called on crypto experts and stakeholders to provide insights that will help establish a regulatory approach to crypto-assets and stablecoins for 2021 amid the Brexit turmoil. The window is open to interested participants up until March 2021.