In City AM Article, Partner Neil Foster and Trainee Solicitor Jonty Browne Urge the UK to Capitalise on Its Crypto Advantage

Partner Neil Foster and trainee solicitor Jonty Browne co-authored an article for City A.M. on how the U.K. can capitalise on its competitive advantage in the crypto market.

The June 9 article asserted that technologies underlying the crypto market are here to stay despite the “crypto winter” of 2022.

“Crypto technologies including blockchains, smart contracts, cryptocurrencies and NFTs have seen approximately $94 billion in investment since the beginning of 2021, with $20-30 billion invested last year.”

They noted that institutional investors and banks are also warming to the benefits of crypto technologies, with Goldman Sachs arranging a bond sale via its tokenisation platform and settled the sale in 60 seconds rather than the normal five-day period.

“Digital and financial transformation is afoot globally, and the U.K. should seek to become the heart of it by eliminating obstacles for crypto and blockchain companies seeking to locate in the U.K.,” they wrote. “[T]he U.K. has the requisite capabilities to capitalise on this opportunity and a strong base to build on. Our research-universities are world class, our courts have proven to be flexible in applying legal concepts to cryptocurrencies, and we receive more investment in fintech than the next 10 European countries combined.”

London is the European centre for venture funding and has more employees working in crypto than any other city in the world, he explained. Brown Rudnick is currently advising several crypto clients who are considering relocating their headquarters to the U.K.

Because of Brexit, the U.K. has the legislative freedom to adopt regulations that encourage innovation and attract talent and investment, he wrote.

“What we need to make this happen is legal and regulatory action,” they wrote. “The crypto industry is the next frontier of digital and financial innovation and just like the U.K.’s adoption of technology, which led to the ‘Big Bang’ in 1986, the U.K. government has a once in a generation chance to be the epicenter of this industry. However, regulators’ delays and inflexibility will dampen demand.”

Read the full article here.