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A significant policy shift and reform of London’s company listing system in the wake Brexit are set to ignite a “digital big bang’ in the UK in a bid to accelerate the growing fintech industry within the nation — according to a recent, government-commissioned review.
The February 2021 report highlighted that Brexit’s regulatory uncertainty, growing global competition, and the UK’s position in the fintech world could threaten the UK’s leadership. It was published in February 2021.
Ron Kalifa, former chief of Worldpay, conducted the review. It is one of many commissioned by government officials to strengthen the UK’s position in finance and technology.
As it stands now the UK is a European leaderIn terms of the number companies involved in fintech and the number of new fintech ventures. However, Brexit complications could lead to a loss of ground between the UK, Germany and France as one destination that is most popular for starting a fintech venture.
The rivals are putting more pressure on the technology and finance sectors since the UK’s departure from the European Union at 2021. But it is possible that they will continue to do so. BrexitCould offer a little more freedom for the nation to become an even more appealing prospect to retain the support of the emerging fintech industry.
With global fintech revenue expectedThe UK’s priority in fintech is a good idea. It will be worth more than $300 billion by 2022. Let’s look at how the UK plans to capitalize on the growing fintech industry in the wake Brexit.
Passport to Fintech.
The UK government will use a visa program that targets fintech professionals to fill any gaps in the sector’s workforce due to Brexit, which has resulted in a loss in access to the EU’s vast skills base.
The move has been welcomed by the fintech sector, which was concerned about accessing skilled workers before the end of the financial crisis. the Brexit process.
According to a Sunday TelegraphReport: Rishi Sunak, UK chancellor, will soon announce a plan for helping the UK fintech industry to retain the talent that it needs to be a world leader in this sector.
It is hoped that the UK’s fintech visa program will allow fintech unicorns to thrive. The UK lost the right to have professionals from Europe work in the country after the EU exit. Many skilled European workers have also fled the UK since the exit from the EU. climate of uncertaintyBrexit has sparked negativity and fear.
London faces fierce competition from European countries like Berlin and Barcelona for talent in the fintech sector.
This exodus is exactly the goal of the UK, and the risk posed by it has been highlighted by Ricky KnoxTandem, the CEO of fintech bank Tandem, said that tech visas were a great thing and essential to keep a strong fintech and technology sector. “Over half our coders are not from the UK and some have left due to Brexit.”
There is enough space to accommodate crypto.
Another aspect of this review calls on the UK, in order to attract more fintech businesses in future, to revise its approach towards crypto-assets regulation.
Recent UK regulators have taken restrictive measures, including bans on crypto derivatives sales and an anti-money laundering registry. This has created a hostile environment for blockchain and decentralised finance fintech companies to establish camp in London.
The review points out other markets have been pressing ahead in the development of crypto-specific structures, such as the EU’s Markets in Crypto Assets proposals. It also stated that the UK must quickly revise its position in these matters before other tech hubs take over.
“A bespoke regime to protect crypto assets should be functional and technology neutral, in line the principles of the existing regulatory framework, as also the concept “same regulation, same risk”, while being tailored to the crypto asset-related risks.” the report states. “It should also be flexible enough to deal with future challenges — such as how Decentralised Finance (DeFi) should be regulated.”
In addition to these, the review recommended that Britain continue its participation in the Global Financial Innovation Network — a working group of national regulators — and to lead the way on crypto policy and regulation moving forward.
Decentralised finance is one sector that could be of benefit to the UK. better known as DeFi. DeFi apps are a part of a market that has grown from $1 billion to $40 billion in less than a year. Fintech around them is built on cryptocurrencyBlockchains could be the key to sustainable growth as technology continues its transformation of the financial landscape.
The rise and fall of the IPO.
Public listings are also a key tool to generate financial stability. Boris Johnson, Prime Minister, has already reportedly met with executives from Deliveroo, Revolutto convince them to list on London Stock Exchange.
The recent report again suggests that public investors should be allowed to hold fewer shares, in order to prevent diluting the stock market. early backersFintech startups – and “golden shares” or dual-class share arrangements that could allow founders more control over their companies and keep them safe from hostile takeovers.
The call for a listing reform in London may have come at the right time as companies like Deliveroo and Wise are all expected to launch in 2021. Revolut, OakNorth, Checkout.com and other firms have also found themselves. in the midst of IPOAs a result, speculation has increased as the valuations of financial and tech companies have grown in the wake o the Covid-19 pandemic.
This move may attract significant investor interest to London. Many IPOs today focus on institutional investors. However, there are companies that allow individuals to participate first public offerings that would otherwise not be possible. Freedom Holding Corp., a NasDaq listed company has a platform called Freedom24. individuals can apply to participate in the IPOs of their choice — albeit at a financial threshold of at least $2,000.
Fidelity, for example, is a more traditional organisation. also offer general public participation — however, only at the much higher threshold of $100,000 to $500,000 in household assets.
Another traditional platform is TD Ameritrade. This platform, owned by Charles Schwab Corporation(SCHW), allows for IPO participation. selected account holders. However, the threshold is very high. You must have a minimum account value of $250,000 and have completed at least 30 trades in the past 3 months in order to be eligible to participate in IPOs.
These are the real value London-listed IPOsThis could be found in the UK’s plan to increase its appeal as a financial technology haven following Brexit. With a growing interest in financial technology and more accommodating regulations 2021 is expected to be a landmark year in the fight to keep talent away from these shores for the EU.
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