What’s the UK’s Finance Minister’s Stance on Crypto Regulation?
- The UK’s policies on crypto regulations are yet to be announced by the new prime minister, Liz Truss.
- UK lawmakers are working hard towards regulating stablecoins.
The United Kingdom welcomed new faces on Tuesday as Boris Johnson formally handed over his resignation letter to the Queen, and Prime Minister Liz Truss began what would be a new era. Truss wasted no time in getting down to business and has already appointed ministers who would be working with her to bring change to the UK.
The new Prime Minister named Kwasi Kwarteng as the UK’s new finance minister, replacing Nadhim Zahawi. Kwasi comes into the administration with previous political experience, having served as the U.K. government’s secretary of state for business, energy, and industrial strategy.
Truss’s election to office on Monday was a hopeful moment for crypto lovers in the country. The 47-year-old politician had previously made comments showing her soft spot for the crypto industry. In 2018, Truss called for an end to regulatory policies which could hinder innovation and competition in the crypto market.
However, not much is known about Kwasi’s stance on cryptocurrency and digital assets. The previous finance minister served in a department that supported blockchain technology in 2021. But, Kwasi has not publicly spoken about his plans for blockchain in the UK.
Crypto enthusiasts in the UK are patiently waiting to discover the path this new administration will follow in regard to crypto regulations. As of now, authorities in the UK are moving closer to regulating stablecoins, but there are fears that such a move could curb growth.
According to the IMF, crypto products have gone from being niche products to mainstream adoption in a few years. However, the IMF believes this growth necessitates crypto regulation. In a new report published by IMF capital markets director Aditya Narain and assistant director Marina Moretti, the recent collapse and failures of several crypto exchanges and lenders pushed the calls for crypto regulation.
Regulators from all around the world have been exploring possible ways to regulate the industry before further endorsements. European regulators have reportedly made progress in their long-awaited Markets in Crypto-Assets (MiCA) policies. The final text will reportedly be released by the next month.
The United States is also in hot pursuit of regulatory policies. The Responsible Financial Innovation Act, a law regulating cryptocurrencies, is expected to address some of the most pressing issues plaguing the digital asset market.
Several ardent cryptocurrency critics are beginning to support regulation over a general ban. Crypto critic snd U.S. congressman Brad Sherman became the latest to do so after acknowledging the market has grown too influential for a blanket ban.