Sir Keir Starmer’s Plans For Crypto Unclear As Labour Ousts Conservatives In UK

The UK turned red last night as the Labour Party swept aside the conservatives in the General Election. Sir Keir Starmer will replace Rishi Sunak as the UK’s Prime Minister and will now begin forming a majority government. The Labour party has been mostly quiet on its plans for the crypto industry and it is unclear what implications its win will have on the sector.

With the election now settled, a change in government is imminent and will lead to wholesale changes throughout the country.

As per the Labour manifesto, a big shake-up is expected across various sectors, with crypto sure to be on the agenda.

Labour’s Stance (Or Lack Of) On Crypto

The Labour Party have long been calling for stronger regulation across financial markets. It has stated consumer protection and economic stability as its driving factor. This sentiment from Labour will apply heavily to crypto. It is seen by many as an unregulated industry, ravaged by scammers. Add to that the heavy volatility and security breaches, there is a strong feeling that Sir Starmer and his party will want to bring some order and regulation to the crypto markets.

WILL LABOUR'S UK VICTORY BE GOOD NEWS FOR CRYPTO?

Following a sweeping victory that concluded 14 years of Conservative leadership, the future of cryptocurrency regulation in the UK remains uncertain under Labour.

Although their election manifesto omitted any mention of crypto,… pic.twitter.com/lJ9XUY7w54

— Crypto Town Hall (@Crypto_TownHall) July 5, 2024

In Labours financial services plan, it vaguely touched on the digital asset sector saying it will “embrace innovation and fintech as the future of financial services by becoming a global standard-setter for the use of AI in FS, delivering the next phase of Open Banking, defining a roadmap for Open Finance, embracing securities tokenisation and a central bank digital currency, and establishing a regulatory sandbox for financial products to reach underserved communities.”

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Potential Regulatory Changes Following Labour’s Election Win

Labour’s win is likely going to see an introduction of stricter regulations in order to protect investors from the risks and volatility associated with the cryptocurrency sector. This might include mandatory disclosures about the risks of investing in digital assets, stricter Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements for crypto exchanges, and possibly the introduction of insurance schemes to protect investors’ funds.

1/ 📰 Europe's MiCA is finally here! 🌍 This landmark regulation sets a new standard for crypto across the EU, aiming to create a unified market and boost consumer protection. MiCA covers everything from stablecoins to crypto asset service providers. 🇪🇺 #CryptoRegulation #MiCA pic.twitter.com/DyfELEoLm8

— Kryptos (@hellokryptos) July 3, 2024

Cryptocurrency exchanges operating within the UK will probably be targeted heavily by the new government. Labour will likely follow in the footsteps of many EU countries regarding regulation. There have been an introduction of more rigorous licensing requirements and regular audits in order to avoid another FTX-style scandal.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.