UK government departments, said the former head of the LSE division, should concentrate on recognizing the merits of cryptocurrencies and SPACs.
Xavier Rolet, former CEO of the London Stock Exchange Group, has urged the UK government to look at cryptocurrencies and SPACs to reduce Brexit’s negative effects. Rolet reported in a recent study that in both ways, the UK has trailed behind other countries.
Will the UK Turn To SPACs And Crypto?
Born in France, Rolet is an entrepreneur and the chief executive officer of CQS, a credit-focused asset management company based in London. However, he served as the CEO of the London Stock Exchange Group before taking this role and was listed by the Harvard Business Review as one of the 100 best CEOs in the world in 2017.
In a paper cited by Bloomberg, after the departure of the European Union and the European Atomic Energy Community, better known as Brexit, Rolet referred to the future ramifications for the UK economy.
If it wishes to minimize the risks and help the nation prosper, the executive claims that the UK has two realistic choices to consider.
In the first one, he urged the government to recognize the SPAC revolution promptly. These special purpose acquisition companies (SPAC), also referred to as ‘blank check companies,’ act as shell corporations listed on a stock exchange with the idea of purchasing a private company, thereby making it public. This method ultimately removes the need to go through a conventional initial public offering (IPO).
Although in the past year, the US has seen substantial acceptance with a 10-fold rise in the raised funds compared to the results of 2019, the UK regulators have halted their progress on the London markets.
The crypto ecosystem could “position London and the UK at the core of a credible and stable financial market,” with proper regulations.
The UK’s Blockchain Legislative Strategy
Although UK regulators have hindered the development of SPACs within the country, the financial watchdog of the nation, the FCA, has also been very tough on the cryptocurrency industry.
The Financial Conduct Authority barred crypto-derivatives and exchange-traded notes (ETNs) from retail customers at the beginning of this year.
Furthermore, the watchdog has given several alerts to investors that if allocated to digital assets, they could lose all their funds.
The regulator also confirmed that all digital asset companies located in the UK need to be registered with it, but extended the registration deadline to 9 July 2021.