As an analyst with a background in financial markets and politics, I believe that the crypto industry in the UK is at a pivotal moment. The upcoming elections have the potential to significantly impact the sector’s future, given the recent surge in interest and ownership of digital assets among the British population.
In the upcoming UK elections on July 4, the Conservative Party, known for their supportive stance towards cryptocurrencies through various policies in recent times, is predicted to lose a significant number of seats, potentially hundreds.
As a researcher studying the intersection of politics and cryptocurrencies, I’ve noticed that during the U.S. presidential campaign, crypto has gained significant attention, particularly with Donald Trump expressing interest in Bitcoin supporters. In contrast, the upcoming British elections have seen less emphasis on digital assets from the candidates.
As an analyst, I would put forth the perspective that the figures from the Financial Conduct Authority’s most recent data are likely underrepresenting the actual number of crypto owners in the U.K. In August 2021, approximately 9% of adults in the country held cryptocurrencies, translating to nearly five million individuals. However, considering the ongoing bull market, it is reasonable to assume that this figure has grown significantly since then.
Despite their stated intentions to make the U.K. a leading cryptoasset hub, Prime Minister Rishi Sunak and his Conservative Party face an uphill battle in the polls. The Economist’s prediction model indicates that they have a minuscule chance, below 1%, of winning the July 4 election following a challenging campaign period.
Due to their rising influence, crypto businesses are making efforts to win over Labour, the leading political party in the UK polls and anticipated future occupants of 10 Downing Street. Progress has been made in this regard, as evidenced by an earlier encounter between shadow chancellor Rachel Reeves, who would assume the finance minister role if Labour triumphs, and Coinbase at a January Davos breakfast prior to the current election campaign.
A future Labour administration will collaborate with the technology industry to generate employment opportunities and foster wealth in the United Kingdom.
— Rachel Reeves (@RachelReevesMP) January 18, 2024
As a researcher studying the developments in the cryptocurrency industry, I can tell you that when the race for the Number 10 position in the UK government heated up, Coinbase took decisive action by expanding its “Stand With Crypto” campaign into British territory. This initiative, which was originally launched in the United States to rally the crypto community and influence legislative processes, saw a high-profile launch event held at the House of Commons last month. Notable attendees included government ministers and senior Labour Party members aiming for their seats.
A seven-point plan, referred to as a “manifesto,” has been proposed to make the U.K. a leading hub for fintech, digital assets, and tokenization on a global scale. The following are crucial policy suggestions for the incoming administration:
- Welcoming fintech, Web3 and crypto firms to do business in Britain
- Establishing a “comprehensive regulatory framework” for crypto assets
- Delivering regulatory clarity on staking
- Understanding how decentralization could revolutionize the economy
- Encouraging all departments to embrace blockchains and make public services more efficient
- Launching a tokenization strategy for the City of London
- Updating Britain’s legal frameworks for digital assets
Some organizations, such as the U.S.-based Crypto Council for Innovation, are advocating for clearer guidelines on current regulations that have been difficult for their members to adhere to. They also seek a roadmap towards a more comprehensive regulatory framework.
It’s undeniable that Sir Keir Starmer harbors grand plans if he were to become the next Prime Minister. However, it remains uncertain how much emphasis he would place on these goals under such circumstances. Last month, Sir Keir outlined his initial actions, which include implementing stringent budget controls, founding a publicly owned energy company, reducing healthcare waiting lists, intensifying efforts against smuggling cartels, and recruiting additional police officers and teachers.
Will recent policies be reversed?
As a crypto analyst, I can share that there’s growing apprehension among crypto investors and businesses in the UK regarding potential policy changes under a Labour government. During Rishi Sunak’s tenure, some investor-friendly policies were established. However, with the election postponing the Tories’ plan to finalize stablecoin legislation before Parliament adjourned for summer, there are concerns about whether these policies will be dismantled altogether under new leadership.
The Crypto Council for Innovation seems pretty relaxed about this. It said:
As a crypto investor, I believe Keir Starmer comes across as thoughtful and committed to careful decision-making, making it less probable for him to dismantle the Conservatives’ efforts on cryptocurrency without good reason. Consequently, major regulations like those concerning stablecoins are likely to persist. Furthermore, it’s important to remember that the Financial Conduct Authority (FCA) remains an autonomous body with its staff remaining in place regardless of any government shift.
Crypto Council for Innovation
With a positive outlook, the council expressed that a fresh government presents “a valuable chance” for the crypto industry. Newly appointed MPs, many experiencing their first term in Westminster, offer potential connections that could benefit this sector.
If the Tories experience significant losses in the upcoming election, with their seat count potentially dropping from 376 in 2019 to around 80, it’s reasonable to assume that some reliable contacts and allies in the industry based in London could find themselves out of work.
Read More
Sorry. No data so far.
2024-06-19 14:28