The U.K. general election is just around the corner, and the Labour Party is currently leading in the polls with 42% of voter support. However, despite being the favorite to win, the party has not given much attention to the topic of cryptocurrency during its campaign.
Other major parties, including the Conservatives and the Liberal Democrats, have also failed to address crypto-related issues in their election manifestos. This lack of focus on the crypto industry has left many wondering about the future of digital assets in the country.
During the recent debate between Prime Minister Rishi Sunak and Labour’s Keir Starmer, topics such as welfare, immigration, and the relationship with the European Union dominated the discussion, with no mention of crypto. While the Conservative government has previously introduced some crypto-friendly policies, their current manifesto remains silent on the matter.
Laura Navaratnam, the U.K. policy lead at the Crypto Council for Innovation, noted that the Labour Party’s manifesto briefly touched on becoming a tokenization hub and supporting digital pound plans but lacked substantial details on crypto. Despite the absence of explicit statements, the manifesto focuses on economic growth, promising investments in building supply chains, increasing neighborhood police presence, and reducing waiting times for the National Health Service.
In a broader global context, crypto has not been a significant issue in many countries holding general elections this year. In countries like South Africa, Croatia, Finland, Lithuania, and France, crypto-related topics have not garnered much attention. However, the U.S. remains an exception, with Republican presidential candidate Donald Trump bringing up crypto issues.
Looking ahead, industry participants are hopeful that the major U.K. parties will address crypto concerns post-election. George McDonaugh from investment firm KR1 believes that the crypto industry can drive growth and job creation. Eleanor Gaywood from Coincover emphasized the importance of concrete details from both Labour and Conservative parties regarding their support for innovation.
Despite the lack of explicit mentions in party manifestos, the need for regulatory clarity in the crypto space remains crucial. Legislation to allow the Financial Conduct Authority to regulate stablecoins and establish staking rules was anticipated but delayed due to the early election call. Market abuse rules and guidance on promotion rules are also deemed necessary by crypto advocates.
The Conservatives have expressed a desire to position the U.K. as a crypto hub and have taken steps to regulate the industry, including facilitating the seizure of crypto in criminal cases. A phased approach to regulation, starting with stablecoin legislation, has been proposed. Navaratnam believes that regardless of the election outcome, ongoing regulatory efforts will likely continue.
In conclusion, while the major U.K. parties have not extensively addressed crypto issues in their election campaigns, the industry remains optimistic about the future regulatory landscape. With a growing global interest in digital assets, it is essential for policymakers to provide clear guidelines to support innovation and development in the crypto space.