Regulation
Labour leader Keir Starmer to become UK’s next prime minister with cryptocurrency plans unclear
The Labour Party won the UK general election in a landslide on Thursday, ending 14 years of Conservative rule and will appoint Keir Starmer as prime minister with a legislative agenda that leaves little room for clarification on the direction of cryptocurrency regulation.
The Labour Party won well beyond the 326 seats needed for a majority, with BBC Report held 412 seats as of 11:19 a.m. British Summer Time (10:19 a.m. UTC) on Friday, relegating the Tories, as the Conservative Party is known, to 121 with two results yet to be declared. Neither party mentioned the cryptocurrency industry in their manifestos ahead of the election. The Labour Party focused on the economy, policing and the NHS.
The Labour Party, for its part, has said it will support the Bank of England digital pound plans. The decision on whether or not to issue the central bank digital currency (CBDC) will be taken by the bank in 2025-2026. Before that happens, Parliament will have to pass the appropriate legislation.
“Four and a half years of work, changing the party, that’s what this is for: a changed Labour Party, ready to serve our country, ready to put Britain back where working people are,” he said.
“The Labour Party has won this general election and I called Keir Starmer to congratulate him,” Sunak said in a concession speech Friday morning. “The British people have delivered a sobering verdict tonight.”
“A lot of the really important work has been done, and it hasn’t been done by the parties themselves, it’s been done by government departments,” Jordan Wain, head of UK policy at Chainalysis, told CoinDesk in a previous interview. “It’s been done by the FCA. [Financial Conduct Authority]They are the ones who are making the legislation. They are not going to sweep away all that hard work, it is not going anywhere.”
Crypto UK, a lobby group that frequently met with regulators and ministers to champion the cryptocurrency community during the Conservative reign, said it also had links to members of the incoming government.
“As the landscape rapidly evolves, CryptoUK calls on the Labour Party to prioritise clarity and proactive policymaking to unlock the full potential of our industry,” a spokesperson said in an emailed statement. “Despite the sector’s potential to drive job creation, economic growth and greater inclusivity, a comprehensive strategy for the UK’s cryptocurrency and digital asset sector remains elusive.”
UPDATE (July 5, 07:40 UTC): Update seat count in second paragraph.
UPDATE (July 5, 10:48 UTC): Updates seat count, adds Sunak resignation in 8th paragraph, Crypto UK statement in last paragraph.