Crypto back in business under PM Rishi Sunak

By Ian Silvera

The cryptocurrency industry may as well wait another couple of months for the semblance of a long-overdue regulatory framework.

For many, the UK is about five-years too late anyway and many blockchain businesses have come and gone, setting up shop in the likes of the US and Gibraltar, where rules and punishments are much clearer. In that sense, Rishi Sunak’s appointment as Prime Minister this week (at just 42) is somewhat inconsequential.

As Chancellor, he infamously promised a Royal Mint-backed non-fungible token (NFT) and declared that the UK should become one of the world’s crypto hubs, something the 2021 Kalifa Review also called for.  Alas, it may be a bit late for that but the consequential aspect of Sunak’s twisty-twirly ascent is that stuff – for want of a better word – is actually going to get done in government. And that Sunak, as a former investment bank analyst and hedge funder, has benefited from the UK’s prowess in the financial services sector, an industry which blockchain technology can help enhance, advance and transform, especially alongside other technologies like machine learning and augmented reality.

The other point of note is that Sunak is not hostile to the cryptocurrency industry and at least seems to know about it. It is unclear, by way of comparison, if Chancellor Jeremy Hunt knows his Bitcoins from his block rewards.  But the man actually overseeing all the change will be City Minister Andrew Griffith, who inherited the role from John Glenn in Liz Truss’ flash government. All eyes will now be on Griffith and the Financial Services and Markets Bill, which, amongst other important measures, will regulate and recognise stablecoins. The draft legislation is currently at committee stage.