Will UK’s New Administration Be Crypto-Friendly?

The new Prime Minister, Liz Truss, had previously stated that the UK should welcome cryptocurrencies. 

New PM Takes Office

Over the weekend, the United Kingdom welcomed its new Prime Minister, former Foreign Secretary Liz Truss. Earlier today, she was sworn into office by Queen Elizabeth II. Crypto enthusiasts and industry leaders are hopeful about her appointment, even though Truss has not explicitly expressed support for the space. Her opponent in the race for the office of the Prime Minister, Rishi Sunak, also held very strong pro-crypto policies. There is word that he might be appointed as a member of her cabinet; however, nothing has been explicitly announced as of yet. Despite the uncertainty, Truss has been pushing pro-business and pro-privatization policies for her administration, which bodes well for the country’s regulatory framework for crypto. 

Truss’s Pro-Crypto Policies

Her previous accomplishments as Secretary of State for International Trade indicate that Truss might take a hands-off approach to regulation. 

Back in 2018, Truss had tweeted,

“We should welcome cryptocurrencies in a way that doesn’t constrain their potential. Liberate free enterprise areas by removing regulations that restrict prosperity.”

Two years later, in 2020, she also launched a digital trade network that promotes fintech firms, among other measures, in order to promote opportunities in blockchain technology. 

In her own words, 

“We want to achieve a world-leading data and digital agreement, underwriting data flows but also dealing with issues like blockchain and artificial intelligence, thereby making sure that we and the US are leading the world and able to share these economic opportunities.” 

These instances do indicate a pro-crypto stance. However, as Prime Minister, she has yet to explicitly state if her previous policies would translate into more crypto-friendly regulations on an administrative level. 

UK As Global Crypto Hub – The Story So Far

Most crypto-heads are keen to know whether Truss will continue the previous administration’s work of developing the UK as a global crypto hub. For example, the government was exploring how property rules can be applied to digital assets in Wales and England. 

And even though the Bank of England has been viewing stablecoins with a sterner eye, BoE governor Andrew Bailey has acknowledged the role that blockchain and crypto technology could play in financial institutions. The fact that he is at least open to innovations in this sector has been considered quite encouraging. The BoE has also appointed a consortium to test cross-border payments for its sterling-backed CBDC. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.