Alex Gerko, the founder and co-CEO of XTX Markets, the largest individual taxpayer in the UK, recently voiced his concerns over the government’s backing of the crypto industry. His comments came in response to UK Prime Minister Rishi Sunak praising Andreessen Horowitz’s plan to expand its crypto division in London.
In a tweet, Gerko expressed his disagreement with the government’s support, stating, “Throwing government support behind the industry that is 99% to 100% fraud or bullshit or both is absolutely mad.” However, he declined to provide further details on his remarks.
Gerko’s position holds weight as he contributed significantly to the government’s tax revenue, having paid approximately $488 million in taxes last year, as reported in The Sunday Times tax list.
The announcement by Marc Andreessen’s venture firm about expanding its crypto division in London was met with praise from Prime Minister Sunak, who called it a “huge vote of confidence” in the UK’s potential to foster and nurture future tech businesses.
Chris Dixon, who leads Andreessen Horowitz (a16z), stated that both parties involved, including the prime minister, recognize the promise of web3, indicating their optimism about the future of decentralized web technologies.
Earlier this year, a16z responded to the UK Treasury’s consultation paper on crypto regulation, advocating for a more nuanced approach to governing the industry.
XTX Markets, founded by Gerko in 2015, has emerged as a leading systematic market-maker in spot currency trading, surpassing major banking institutions in trading rankings. With a daily trading volume of approximately $250 billion, the firm relies on algorithms guided by programmers and analysts for trading decisions, eliminating human intervention.
In 2018, XTX Markets established a hub in Paris following the UK’s formal departure from the European Union.
Gerko’s criticisms highlight ongoing debates surrounding the government’s role in supporting the crypto industry and the need for comprehensive regulations to address the challenges and risks associated with the rapidly evolving digital asset space.
