Prime Minister of the United Kingdom, Keir Starmer, has begun choosing members for the new government after the recent landslide election. The Labour Party to victory. Tulip Siddiq, a member of parliament, has been responsible for serving as the Economic Secretary to the Treasury and City Minister. This is one of the appointments that has been made.
Siddiq can now exert influence over the policies that govern the regulation of digital assets and digital currencies. As a result of making this appointment, the issue was raised by banks in the United Kingdom. On the other hand, her prior words that suggested the possibility of a “crypto crackdown” had been carefully considered.
Siddiq Wants Crypto Risk Framework
In an opinion piece that appeared in the New Statesman in May 2023, Siddiq urged a “comprehensive. They all-of-government framework” to handle the dangers and possibilities of cryptocurrency. She said the Conservative government’s stance on Bitcoin was like the “Wild West,” and she pushed for more regulation and safeguards against fakes. According to Siddiq, recruiting fintech companies. The UK crypto regulation and ensuring effective regulation of the sector would be the priorities of a Labour government.
The bitcoin sector has taken notice of Siddiq because of her position. By 2022, she had been named by the self-regulatory trade group CryptoUK as one of the top ten UK Economic Secretaries facing Parliamentarians debating blockchain and cryptocurrency in the House of Commons. According to financial consultant Nigel Green of deVere Group, Siddiq would turn. The United Kingdom would become a world hub for tokenized assets if Labour became the next government. However, the Labour government’s goals regarding digital assets are still up in the air. At first glance, it appears that the primary goal is to end—the Conservatives’ policy of sending asylum applicants back to Rwanda.
According to Edouard Hindi, chief investment officer of hedge fund Tyr Capital, instead of focusing on building up. Regarding the regulatory framework for Web3, some experts think the government will prioritize housing and the National Health Service (NHS). The new UK Economic Secretary, facing the government, must settle on its crypto policy before proceeding with Web3 legislation. Inflation, slow economic development, and high unemployment are just a few of the problems plaguing the British economy. Disruptions in the supply chain and increasing energy prices have contributed to the UK’s noticeably high inflation rate as of April 2024.
UK Increases Regulatory Scrutiny
In the wake of several high-profile bankruptcies last year, several nations, including the UK, have increased their regulatory efforts. Cryptocurrency exchange activities are overseen by the Financial Conduct Authority (FCA), which primarily focuses on consumer protection and anti-money laundering measures. New regulations introduced last year by the Financial Conduct Authority (FCA) mandate registration. The regulator and marketing materials approval by an FCA-authorized business for crypto enterprises.
Exchanges now openly advise consumers about the dangers of investing in cryptocurrency, a significant development. The Financial Conduct Authority (FCA) has warned that domestic and foreign exchanges operating in the UK crypto regulation face criminal prosecution, including. There is the possibility of two years in prison and limitless fines for non-compliance. Coinbase, Revolut, and Binance are three prominent cryptocurrency exchanges. They have upgraded their web and mobile apps to meet the new requirements.
