London’s new-look crypto market may see some caveats

The cost of having two separate shock-absorbing cushions of spare money capital was deemed by some as adding extra costs on the sector. Most big banks are not calling for its reversal, and this may be mentioned in the overhaul, but most of the big banks have spent billions on this ring fencing.

There may be new rules around bundling investments into tradeable units - a process called securitisation. The process was instrumental in exacerbating the 2008 financial crisis, because no one really knew where the bad debts were located, so everyone stopped lending to everyone.

There will be some nods to developing the UK as a centre for cryptocurrencies, but with some caveats after the demise of the FTX. Most financial industry leaders say they are curious but don't feel the need to be first on this. Let the shipwrecks of others be your seamarks, said one.

The London financial markets are a Jurassic Park of old-fashioned companies and investors, and it has struggled to attract the fastest growing companies to list on UK exchanges, often losing out to New York, Shanghai or even Amsterdam, according to leading hedge fund manager Sir Paul Marshall of Marshall Wace.