UK Crypto Advocates Urge for Steady Policy Amid Labour’s Landslide Win

Industry leaders anticipate continuity in crypto policy despite Labour’s overwhelming victory.

Following a decisive victory by the Labour Party in the United Kingdom’s recent elections, the future of the country's cryptocurrency policy is under the spotlight. On July 4, Labour secured a dominant position in government, sparking calls from crypto advocates for the new administration to maintain the momentum established under the previous Conservative leadership.

As of July 5, Labour had claimed 412 seats in the 650-seat House of Commons, a significant shift from the Conservatives, who are projected to hold 122 seats—losing around 250 seats and their leadership status. Former Prime Minister and Conservative leader Rishi Sunak has stepped down, making way for Labour leader Keir Starmer to take over as the new head of government.

The Road Ahead for Crypto Regulation

Prior to the election, the UK government had been gearing up to introduce a regulatory framework for cryptocurrencies and payment stablecoins by July. However, with the shift in power, experts suggest that these plans might face delays, especially with the House of Commons going into recess and the summer party conference season on the horizon.

“Despite the political changes, we expect crypto policy to remain largely unchanged,” stated Bivu Das, the UK managing director for the cryptocurrency exchange Kraken. “The new government has a crucial opportunity to continue fostering innovation and growth within the crypto space, reinforcing the UK’s status as a leading hub for blockchain technology.”

Keld van Schreven, co-founder and managing director of the digital asset investment firm KR1, emphasized the critical timing of the leadership change for the crypto sector. “Significant progress has been made towards establishing a regulatory framework, but further efforts are needed to position the UK as a global leader in crypto.”

Starmer’s New Government

As Keir Starmer prepares to step into his role as Prime Minister, he has already appointed key Members of Parliament to his cabinet. Among these is Rachel Reeves, who will serve as Chancellor of the Exchequer, a pivotal role for financial and economic policymaking in the UK. However, the appointment for the Economic Secretary to the Treasury, another influential position for digital assets, remains undecided.

CryptoUK, a self-regulatory trade association, expressed its readiness to work with the new government, highlighting established “strong relationships” with Labour members. A spokesperson urged the administration to prioritize clear and proactive policymaking for the crypto industry, noting the current absence of a comprehensive strategy.

As the Labour government transitions into power, the crypto community is watching closely, hoping for continuity and further advancement in the sector’s regulatory environment.

(Photo Source / Blockonome)