CoinWeb reports:
The Labour Party has officially won the UK general election, securing a landslide victory over the Conservative Party, yet the overall future of cryptocurrencies in the UK remains largely uncertain.
As of the writing of this article, the Labour Party has secured 410 seats, comfortably surpassing the target of 326 majority seats. The Conservative Party, which has dominated British politics since 2010, only managed to secure 119 seats, a disappointing outcome.
With Conservative rule now ended, the cryptocurrency industry is looking to Labour leader Keir Starmer for guidance. Unfortunately, Starmer has remained relatively silent on his stance regarding cryptocurrencies.
The Labour manifesto did not include terms such as “digital assets” and “cryptocurrencies,” nor were these words part of Starmer’s campaign. However, in a document titled “Financing Growth” released in January, the party expressed plans to “embrace security tokenization and Central Bank Digital Currencies (CBDCs).”
The document stated, “Tokenization can enhance liquidity, introduce new asset classes and asset segmentation, and strengthen risk management (by reducing counterparty and operational risks).”
“Therefore, a future Labour government will strive to make the UK a global leader in tokenization.”
Additionally, Labour plans to introduce a regulatory sandbox for financial market infrastructure, “to address regulatory bottlenecks in tokenization,” and explore “the possibility of issuing tokenized gilt-edged bonds through a Debt Management Office pilot to test the technology’s impact and create demand for tokenized assets.”
However, Labour did not mention cryptocurrency legislation, blockchain, or establishing a regulatory framework to protect investors.
Nigel Green of the deVere Group commented, “So far, Starmer’s position on cryptocurrencies remains somewhat unclear. The cornerstone to making the UK a global cryptocurrency hub lies in establishing a clear, comprehensive regulatory framework.”
“This approach would make the UK an attractive destination for cryptocurrency firms seeking a stable and supportive regulatory environment. By investing in blockchain technology and supporting startups, the UK can lead the development of new applications and services in the cryptocurrency field.”
Green also called for “government-supported initiatives such as research funding, tax breaks for blockchain startups, and collaboration with academic institutions” to drive industry growth.
In May, the London Stock Exchange approved Europe’s first cryptocurrency ETP, though its debut performance was lukewarm.
“For Starmer and the Labour Party, the strategic imperative is clear. By positioning the UK as a global leader in cryptocurrencies, they can drive economic growth, create job opportunities, and foster innovation.”
“The potential benefits extend beyond the cryptocurrency industry, enhancing the UK’s overall financial ecosystem and solidifying its role as a forward-thinking, dynamic economy.”
