Outlook for Crypto in the U.K. Under New Prime Minister is Hopeful

Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.

In the middle of a tumultuous year, the U.K. Tory party held elections to replace Boris Johnson, who resigned as prime minister in July.  The contest between the crypto friendly former Chancellor of the Exchequer Rishi Sunak and Foreign Secretary Liz Truss resulted in a win for Truss, but not by a large margin.  The new prime minister inherits a plethora of issues, spanning from increasing inflation and energy crisis, to an enduring post-Brexit political mess.  After purging the cabinet of Sunak supporters, many, particularly in the crypto community, are left wondering about the future of crypto with this regime change.  The crypto and FinTech companies that spent the past few months courting Sunak and his supporters must now switch gears and discover the agenda of the new PM.    

Undoubtedly, the primary focus for Truss’ tenure will be the economy and it is unlikely for her objectives to conflict with the crypto industry.  Truss is transparent in her mission to cut taxes and boost economic activity, therefore attracting businesses will be an imperative.  Comments made today regarding a meeting between new Chancellor of the Exchequer Kwasi Kwarteng and industry leaders, reveal that Truss has plans to reinstate London as the foremost financial center through deregulation.  It isn’t the explicit vote of confidence for crypto, but it is a step in the right direction.  Prioritizing growth of the financial sector will likely benefit the crypto space especially if regulatory measures don’t make the first advances to stifle its development.  Regardless, Truss has a full plate coming into office and any indication on how she will handle the crypto industry will be revealed soon enough.