The United Kingdom has relied on its financial services industry to drive economic growth for decades. However, in light of the British population’s vote to leave the European Union and, thereby, potentially lose the access to the European Single Market, the UK’s status as Europe’s leading financial hub may wane. Is this for better or for worse regarding the crypto scene in the UK?
After surprising results of the ‘Brexit’ referendum in June 2016, several international London-based banks announced plans to move a significant part of their operations to mainland Europe to ensure future access to the European market.
Investment bank Goldman Sachs announced that in light of the uncertainty surrounding Britain leaving the European Union that it will move hundreds of staff to offices in Paris and Frankfurt as part of their Brexit contingency plans, which will now be executed as Article 50 was triggered by Prime Minister Theresa May on March 29. The American bank, however, is not the only financial institution that is relocating operations out of London.
London-headquartered HSBC intends to move 1,000 individuals from London to their Paris office within the next two years, while Swiss banking institutions UBS stated it could move as many as 5,000 employees to offices in Europe. US banks Morgan Stanley and Citigroup are also among the banks that will move staff out of London in light of the UK leaving the EU.
The primary reason for international banks relocating their key operations out of London and into the borders of the European Union is to prevent the banks from losing access to the Single European Market. The uncertainty stemming from the upcoming ‘Brexit” negotiations that will determine the terms of Britain’s exit from the European Union also includes uncertainty surrounding Britain’s future access to the Single European Market. Should