Could UK’s New Prime Minister Rishi Sunak Hold The Key for Further Development of Cryptos Market in The UK?
London, Wednesday, 02 November 2022
U.K. Bitcoin companies and investors have great hopes that the incoming prime minister, Rishi Sunak, can revive Britain's flagging cryptocurrency ambitions.
the modern UK. The leader, who served as finance minister under former Prime Minister Boris Johnson, has a long list of tasks to complete, including reversing the economic damage Liz Truss caused. Although cryptocurrency isn't exactly at the top of his list of priorities, experts in the field believe there is cause for optimism.
Entrepreneurs are feeling relieved, according to Christian Faes, co-founder of the digital lending start-up LendInvest. After Liz Truss and [ex-Finance Minister] Kwasi Kwarteng's conceit and stupidity nearly brought down the U.K., there is a sense that we have someone reasonable in Number 10. economy.”
“Rishi sees the opportunity and potential that crypto has, and wants the U.K. to be a leader in it,” Faes, who also chairs the Fintech Founders network, added.
Former Goldman Sachs analyst Sunak has frequently expressed support for cryptocurrencies. He laid forth a comprehensive plan to turn Britain into a major crypto hub in April while serving as the minister in charge of the nation's finances. This includes convincing the Royal Mint, the official coin manufacturer of the United Kingdom, to produce a non-fungible token and putting stablecoins into the legal framework.
In June, Sunak declared he was "determined" to make the U.K. "the jurisdiction of choice for crypto and blockchain technologies" at a cocktail gathering hosted by the venture capital firm Index Ventures.
However, following weeks of political unrest, cryptocurrency companies and investors are unsure of what he would do to revive the industry, which is still licking its wounds from a punishing few months for the price of digital assets and a wave of corporate failures. There has been a decline in trust in the U.K.'s position in the international crypto market before to Sunak's nomination as PM.
Only 9% of the 300 British fintech founders polled said they were leading the way in cryptocurrency. According to a poll by Fintech Founders, almost 20% of founders said the regulator was "actively signalling" that the U.K. wasn't the best place to launch a cryptocurrency business.
The Financial Conduct Authority has come under fire for taking too long to provide licences to cryptocurrency businesses, a problem that has led to the closure of many businesses and the establishment of new ones in other parts of Europe. After repeated extensions to the deadline for final approvals, the fintech app Revolut only recently obtained a licence for its cryptocurrency firm.
Cryptocurrency may be a way for London to increase its prospects as it seeks to compete with other EU financial hubs after Brexit, according to sources in the sector. Sunak would attempt to coordinate the work of several U.K. regulators to regulate cryptocurrency, as President Joe Biden has advocated for in the U.S.
While the British government has not closed the door to digital currencies, independent regulators' officials have been more critical of the industry.
Sunak might also advance the Bank of England's investigation of a central bank digital currency, which would help the industry in the U.K.
(Source: CNBC // Report by: The Decision Maker – Finance editors)
(Picture by: Simon Walker / HM Treasury, OGL 3, https://commons.wikimedia.org/w/index.php?curid=124686916)