Some industry leaders have hinted that the policy on cryptocurrencies in the United Kingdom would remain unchanged despite the change in government.
The Labour Party will be the main party in power following a landslide victory on July 4th. The party leadership has rarely made crypto and blockchain a part of their official stance.
Indeed, their defenders have called on the new government to continue the work it began under the Conservatives.
On July 5th, the British election results indicated that the Labour Party had won 412 out of the 650 seats in the House of Commons.
The Conservatives would probably gain 122, a decrease of about 250 seats, effectively removing them from party leadership.
Former Prime Minister and Conservative Party leader Rishi Sunak has already resigned. Labour Party leader Keir Starmer, meanwhile, is preparing to become the next head of government.
The Next Steps for Cryptocurrencies
Before the announcement of the general elections, the British government planned to introduce a regulatory framework for cryptocurrencies and stablecoins in July.
Many experts suggested that these plans could be delayed by several months. The House of Commons is on recess following the announcement, and the party conference season will not begin until autumn.
It seems clear that the British political landscape has changed, according to Bivu Das, UK Managing Director of cryptocurrency exchange Kraken. He also stated that the next government will have the opportunity to continue fostering innovation and growth in this emerging asset class.
According to experts, significant progress has been made in defining a regulatory framework. However, there is still work to be done to make the UK a global crypto hub.
Starmer’s New Cabinet
Prime Minister Starmer has already appointed several members of Parliament to his government. Rachel Reeves has been named Chancellor of the Exchequer, a key position for financial and economic matters in the UK.
At the time of publication, Mr. Starmer had not yet announced his choice for Secretary of the Treasury, another position that could impact how the new government handles digital assets.
A spokesperson for the self-regulatory trade association CryptoUK stated that it had established strong relationships with Labour Party members.
Moreover, they have called on the new government to prioritize clarity and proactive policy development for the cryptocurrency industry.
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