Rishi Sunak’s Arrival at 10 Downing Street Might Boost Crypto in the UK.
The response of the markets to Liz Truss‘s dismal mini-budget ultimately led to her decision to resign from her position. The value of the pound plunged to levels never seen before versus the dollar, bond rates increased, and stock markets declined. A lot of markets, including the mortgage market, the pension market, and the housing market, have taken a blow lately. Since Rishi Sunak‘s dire predictions about the economy under Liz Truss were spot on, the party now considers him to be a safer bet than his predecessor.
The UK now has a crypto-friendly Prime Minister in Rishi Sunak.
The current relief rally of the markets, which we’ve seen since his “coronation” by the Conservative party, is something that we’ve seen since his election as prime minister; however, it is anticipated that it will end sooner rather than later because the United Kingdom is still having to face a storm of economic problems. There is the impending onset of a severe and protracted economic downturn, increasing energy costs, inflation that is now running at more than 10%, labour shortages, continuous supply chain crises, and the Bank of England’s intention to raise interest rates. In light of these circumstances, as well as the fact that a large number of people within his own party and throughout the country blame him for Boris Johnson’s resignation, which led to the election of Truss as prime minister, it may be tricky for him to find unity and make headway with the fiscally conservative agenda that he seeks and that markets crave.
Watch: How Prime Minister Rishi Sunak may be proponent for pushing crypto advancement in U.K.
Despite the pessimism, crypto investors are celebrating Rishi Sunak’s entrance at No. 10
During his time as Chancellor, he made the announcement that he desired for the United Kingdom to become a central location for the worldwide cryptocurrency industry. During a speech, he stated —
If there is one message I want you to leave here today with, it is that the UK is open for business — open for crypto businesses… We see enormous potential in crypto… and we want to give ourselves every chance to take maximum advantage.Rishi Sunak
There’s a genuine opportunity to build on our strengths in fintech, seize the capitalist energy which has already made UK financial services what it is… and use it to unleash the potential of crypto-technologies.Rishi Sunak
He was influential in bringing in the Financial Services and Markets Bill, which could give regulators broad power over the crypto industry. Indeed, in that same speech, Sunak’s pro-crypto regulation stance was clear.
We aren’t going to lower our standards, but we are going to maintain our technologically neutral approach. Having robust and effective regulation won’t hinder innovation, it’ll actually boost it — by giving people and businesses the confidence they need to think and invest for the long-term.Rishi Sunak
Furthermore, Rishi Sunak’s perspectives on crypto are transparent —
“This is an approach that I have maintained for a very long time. In light of the fact that virtual currencies like Bitcoin and Ether are destined to play a more significant part in the global monetary system, there is an urgent need to back increased regulatory oversight. Such regulation will help protect investors, combat criminal activity involving cryptocurrencies, and reduce the potential risk of disrupting the global financial stability…
Additionally, it will offer those countries that implement it the possibility of a potential long-term boost to their economies. I have repeated many times that I believe one of the most effective methods to handle regulatory challenges is through the use of exchanges. The vast majority of transactions involving different currencies are handled by financial institutions like banks or currency exchanges; the same should be done with cryptocurrencies. When movements are routed through regulated exchanges, it will be considerably simpler to combat possible illegal activities like money laundering and ensure that taxes are paid.”
- To some degree or another, cryptocurrencies are going to be there for the foreseeable future, and the market for them is only going to expand.
That being said: There is no denying that the crypto ecosystem has to be regulated, and Sunak has openly stated his support for this position. A Prime Minister who is favorable to cryptocurrencies is a bright spot in the United Kingdom’s otherwise dismal situation.