UK Elects Pro Crypto Liz Truss as Prime Minister, Good for Bitcoin?
The UK has been hostile territory for crypto and digital assets, but its new head of government could be leading the country in the opposite direction. Elizabeth “Liz” Truss, from the Conservative Party or “Tories”, has been chosen to replace former Prime Minister Boris Johnson.
In January 2018, as the prices of Bitcoin and Ethereum saw the final days of a significant bull run into new highs, Truss posted a tweet talking about digital assets. In light of her recent win, the crypto community has resurrected the tweet, celebrating Truss’ word:
We should welcome #cryptocurrencies in a way that doesn’t limit their potential. Free up areas of free enterprise by removing regulations that limit prosperity.
In the past hour, the tweet has seen responses from new crypto followers. Many asked the new prime minister to focus on their favorite cryptocurrencies, leading to heated debates between the various factions.
Truss ran on a campaign to “unleash Britain’s potential”, the European nation experiencing high inflation and a slowdown in economic activity. In addition, Britain will have to reconfigure its diplomatic ties in the region after leaving the EU.
When it comes to crypto and digital assets, the country has implemented a similar approach to the United States that limits the role of the nascent asset class in the economy. Many senior government officials have called Bitcoin and digital assets a way to enable illegal activity, an unregulated asset class and more.
In 2021, the UK’s Financial Conduct Authority (FCA) promised to tighten its crypto regulations. Since then, according to a report by FX Empire, blockchain and digital asset companies have experienced “discomfort” with many migrating out of the country and into friendlier jurisdictions.
Is crypto regulation worsening in the UK?
The election of Liz Truss as Prime Minister comes at a potentially good time if she follows through on her statement from 2018. Europe and Russia are fighting over energy. The Vladimir Putin-led country cuts off Europe from its oil and gas supplies.
Putin is putting pressure on the region to force them out of enforcing US-led economic sanctions. As a result, Britain and others have turned their eyes to cryptocurrencies as they believe digital assets could provide Russia with a way out of sanctions.
In a recent release, the Office of Financial Sanctions Implementation of Her Majesty’s Treasury asked companies to report any activity linking crypto transactions with Russian entities. The sector has been caught between the silent war fought by Russia and Europe.
It remains to be seen whether Truss will steer the country into a more friendly state for the nascent class. At the time of writing, the markets have not reacted to the news with Bitcoin and other major cryptocurrencies moving sideways.
