In April 2022, Rishi Sunak, as UK Chancellor of the Exchequer (UK Chancellor of the Exchequer), announced plans to make the country “a global technology hub for crypto-assets”.
We are working to make the UK a global hub for crypto assets. We want to see the businesses of tomorrow, and the jobs they create, here in the UK.
Today @JohnGlenUK set out how we will encourage crypto investment and technology in UK markets. 👇https://t.co/MdZ5IOLZtH
— Rishi Sunak (@RishiSunak) 4 April 2022
“We are working to make the UK a global hub for crypto assets. We want to see the businesses of tomorrow, and the jobs they create, here in the UK,” he said in April 2022.
Now that he has been appointed Prime Minister of the United Kingdom, the crypto industry is eagerly watching how he will shape the future of the island nation’s crypto industry.
Will Sunak ride the crypto train?
Two days after Sunak’s announcements as UK Prime Minister, the Scottish National Party’s Lisa Cameron, who also chairs the Crypto and Digital Assets All Party Parliamentary Group (APPG), has urged the UK government to be clear about its cryptocurrency promises. industry.
Chairman of the APPG @DrLisaCameronMP asks to meet the chancellor @Jeremy_Hunt About @hmtreasuryThe company’s commitment to regulation and consumer protection and the great potential #crypto & #DigitalAssets within job creation, innovation and growth. #cryptocurrency pic.twitter.com/yiuC89Ytf2
— Crypto & Digital Assets APPG (@cryptoappg) 23 October 2022
London-based Mehdi Sunderji, who has over 20 years of experience in the investment industry, told Outlook Money that the UK may be a small fish in a big global pond, but regardless of current political events, it still carries weight as a thought leader and “influencer”. .
“He’s already kicking things off with UK lawmakers, who now recognize crypto as a regulated financial instrument,” says Sunderji.
Also, the House of Commons, the lower house of the British Parliament, voted to designate cryptocurrency assets as regulated financial products and instruments a day earlier, on October 25, 2022.
“I don’t think it’s a coincidence that we’ve seen a rally in crypto assets after this announcement (along with the weakness in the dollar index),” adds Sunderji.
“Although the future is impossible to predict, Sunak’s appointment as the new UK Prime Minister is seen as very positive for the FinTech and crypto industry,” said Dr. Oriol Caudevilla, FinTech advisor and host and co-founder of “A Digital Tomorrow.”
How will Rishi Sunak as UK Prime Minister help with crypto regulation?
Globally, there is a great demand for systematic regulations for digital assets, also within the G20 member group. Britain is also part of the G20 group, and India will take over the presidency by the end of this year.
Industry experts believe that Sunak will help the work towards regulation.
“I feel a drive from Sunak will certainly help regulation. However, one cannot expect miracles to happen as implications of fiscal policy change need to be tested,” said Sanjay Mendis, a Sri Lanka-based cryptocurrency and blockchain strategist.
Cryptocurrency regulations need wider consultation and cooperation from all global bodies, including the G7, G20, Financial Stability Board, Financial Action Task Force (FATF) and International Monetary Fund (IMF), to stop regulatory arbitrage.
Says Sharat Chandra, Co-Founder, India Blockchain Forum, “As a vocal supporter of digital assets, Sunak, in his new role, can potentially shape conversations to drive immediacy in digital asset regulation.”
Sunak’s Take on CBDC
In 2021, Sunak had proposed a Central Bank Digital Currency (CBDC), or “Britcoin” to enter the UK economy by 2025.
Notably, 19 of the 20 countries in the G20 group are exploring a CBDC, with 16 already in the development or pilot phase. This includes South Korea, Japan, India and Russia.
Each of these nations has made significant progress in the past six months, according to atlanticcouncil.org/cbdctracker.
In addition, 105 countries, representing over 95 percent of global GDP, are exploring a CBDC.
Says Sunderji: “It is reasonable to assume that he will make a strong push for ‘Britcoin’ and I think this can only go to increase the acceptance and adoption of CBDCs globally. For the most part, until now, it has been the developing countries that have been broad adopters, more out of their fiat currency volatility is too much to handle. This will be seen as a big positive for other developed countries.”
