Could London finance markets turn to crypto after Brexit?
London has been famous for its financial markets for years but with Brexit now done, there have been big question marks about what it means for the future of the London markets. In January, Amsterdam overtook London for financial trading volumes as post-Brexit trading moved out of the City of London.
However, many in the British government see Brexit as an opportunity and that changes in legislation are no long strangled by getting the 27 member EU countries to agree. The shackles have been taken off and now the London markets can innovate.
Dominic Rabb, the UK Foreign Secretary, said that the EU might "nick" (British word for "steal") some of the UK business but the long term prospects for the London financial markets to grow is strong. It is time to innovate - could cryptocurrency be the answer?
Professor David McMillan, a finance expert who advises the UK government, thinks so. In a recent article he wrote:
“This could include developing and regulating new financial products that allow investors to positively engage with climate change finance and cryptocurrencies.
“This would be a more beneficial approach to taking the financial sector forward than to focus on deregulation in a ‘big bang 2.0’.
With so many big businesses dabbling in cryptocurrency and governments around printing money. Are we now approaching the time when crypto really will become mainstream? The UK government getting into crypto if it happens could be a good thing. I am not too worried as regulation, without stifling innovation, is what will help crypto become more widely adopted.