Boris Johnson’s resignation could halt British crypto-regulations

The Prime Minister of the United Kingdom and the leader of the Tory party, Boris Johnson, announced his resignation from the party leadership on 7 July. He said he would continue his duty as interim prime minister until a successor is properly elected in the autumn.

However, many politicians question the effectiveness of his temporary duty and resign from their own positions. This includes highly ranked personnel from the offices that have worked with the stablecoin regulations. There is no way to tell how these changes will affect the introduction of cryptocurrencies in the UK

Terminations

It is said that there have been around 40 dismissals after Johnson since July 7. The identities of these people have not been released.

In any case, it has been reported that Britain’s finance minister Rishi Sunak resigned a day before Johnson did. Sunak was a public pro-crypto and recently argued that Britain should become a cryptocurrency hub in Europe. Sunak’s resignation was also followed by Economic Secretary John Glen.

Before resigning, Johnson appointed junior education and business minister Nadhim Zahawi as the new finance minister. He has no for or against publicly revealed attitudes to crypto. After achieving that, a news source published an article calling Zahawi to emphasize the importance of carrying out Sunak’s crypto experiments.

Bank of England Deputy Governor Jon Cunliffe hinted at Sunak’s resignation. It said that the Treasury’s plans to establish a regulatory framework for stable coins “may have been delayed due to recent events” on June 6th.

Regulations

After the UK decided to develop into a cryptocurrency hub in Europe, it rolled up its sleeves for a cryptocurrency framework.

Inspired by the LUNA disaster, the UK Treasury Department said it would start regulating stack coins to prevent such a disaster from hurting UK investors on 17 May. By the end of the month, there was already a bill on the subject.

Since then, there have been no updates to the stablecoin framework or a more comprehensive cryptocurrency regulation. However, since the Ministry of Finance’s announcement, political decision – makers have been talking about certain pieces and parts of cryptocurrencies.

Some called for an “attractive” tax rate for crypto to motivate adoption, while others have looked to DeFi for taxation. On the other hand, the country’s central bank has emphasized the massiveness of the current losses due to the bear market and called for stricter, more inclusive cryptocurrency regulation.

None of these calls have been officially answered by lawmakers. It is only a matter of time before the new Johnson-less government reveals how it will proceed with the crypto regulations.