Despite a recent shift in governance following a substantial Labour Party victory in the United Kingdom, industry experts believe that the nation’s stance on cryptocurrency will likely remain as is. The Labour Party emerged victorious on July 4th, with a dominant presence in the 650-seat House of Commons, while the Conservative Party saw a severe drop in influence. Advocates have urged the new governing party to carry out the work initiated under the Conservatives on cryptocurrency policy.
Preceding the general election, indications were that the U.K. government intended to establish a set of rules around cryptocurrencies and stablecoins by July. However, the election outcome brings a potential delay to this process, as the House of Commons goes on a break following the announcement, with a further recess expected during summer before party conference season in the fall.
Bivu Das, U.K. managing director for cryptocurrency exchange, Kraken, points out that despite the political upheaval, the outlook for crypto remains largely unchanged. He appeals to the incoming government to continue promoting advancement and development in the burgeoning asset class, and to uphold U.K.’s status as a favorable jurisdiction for blockchain-based innovation.
Meanwhile, Keld van Schreven, managing director of digital asset investment firm KR1, pointed out that the leadership transition comes during a cruical period for the crypto industry. He emphasised the need for further work on devising a regulatory framework to establish the U.K. as a global crypto hub.
With the introduction of his upcoming cabinet, Keir Starmer, the future Prime Minister, has already put forward several significant names, like Rachel Reeves as Chancellor of the Exchequer, a critical role in handling the country’s financial and economic policies. However, there’s no indication yet as to who would take up the Economic Secretary to the Treasury position – another crucial role likely to influence how the government manages digital assets.
Advocacy group, CryptoUK, which previously established strong connections with Labour Party members, urged the new government to prioritize clear and proactive policymaking in the crypto industry, citing the current lack of a comprehensive strategy.