UK Economic Sec to Enforce Crypto Crackdown

UK Economic Sec to enforce crypto crackdown: During her tenure as shadow economic secretary in the opposition, MP Tulip Siddiq advocated for crypto regulation.

Prime Minister Keir Starmer has initiated appointing members of the new government, including Member of Parliament Tulip Siddiq, following the decisive election on July 4 that favored the UK Labour Party over the Conservatives.

PM Starmer appointed Siddiq as the Economic Secretary to the Treasury and City Minister in a July 9 announcement. This appointment places her in command of various policies that impact the regulation of digital assets and central bank digital currencies in the United Kingdom.

Siddiq, who served as Shadow City Minister and Shadow Economic Secretary during the Conservatives’ tenure as the primary governing party, expressed her intention to enforce more stringent regulations regarding cryptocurrency.

In a May 2023 op-ed for the New Statesman, Siddiq implored UK lawmakers to establish a “comprehensive, all-of-government framework to address the emerging risks and opportunities posed by crypto assets,” per the United States’ approach.

She compared the Conservative government’s approach to crypto to the “Wild West,” advocating for regulation and protection against fraudsters.

“A Labour government would be committed to the safe and responsible exploitation of the progressive potential of crypto technology and the attraction of fintech companies to the UK,” stated Siddiq. “However, it is time to reject the arguments of the libertarian right and effectively regulate the sector.”

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In 2022, Siddiq was considered one of the top ten UK lawmakers who discussed crypto and blockchain in the House of Commons by the self-regulatory trade association CryptoUK.

Nigel Green, CEO of deVere Group, a financial consultancy firm, asserted that the economic secretary would “transform the UK into a global center for tokenized assets” following a Labour victory.

The Labour government’s priorities regarding digital assets still need to be determined. The UK government announced that it would initially discontinue the Conservatives’ policy of deporting asylum applicants to Rwanda under Prime Minister Starmer. At the time of publication, Cointelegraph has yet to receive a response from Siddiq.

“The NHS and housing will be the primary focus of Labour,” stated Edouard Hindi, the chief investment officer of Tyr Capital hedge fund. “The development of the Web3 regulatory infrastructure will likely be postponed until the new government determines the UK’s new crypto policy.”

Labour won 411 seats in the 650-seat House of Commons because of the election, while the Conservatives secured 121 seats. Nevertheless, Lisa Cameron, the MP for East Kilbride, Strathaven, Lesmahagow, and other pro-crypto UK lawmakers, withdrew from the race following the May election announcement.

The general election scheduled for November 2024 in the United States could impact digital assets and blockchain policy, contingent upon which political party secures control of the House of Representatives, the Senate, and the Presidency.

In a letter dated July 9, the Chamber of Progress, a technology trade group, requested that President Joe Biden “provide the regulatory clarity” on crypto that voters desire.