A Labour government in the UK might significantly influence the crypto sector, emphasizing real-world asset (RWA) tokenization and Central Bank Digital Currency (CBDC) development. Nigel Green, CEO of deVere Group, believes Labour leader Keir Starmer should continue the goal of making the UK a global crypto hub.
Opinion polls suggest Labour could win today’s General Election, potentially shifting crypto policies. While Starmer’s exact stance on crypto remains unclear, Labour’s shadow finance minister Rachel Reeves and shadow city minister Tulip Siddiq have shown support for the tech sector. Siddiq has expressed that Labour would aim to make the UK a global center for tokenized assets.
Labour plans to embrace securities tokenization and CBDCs, focusing on creating a clear and comprehensive regulatory framework. This framework is crucial for establishing the UK as a global crypto hub, providing clarity and security for businesses and investors. Green highlighted that a well-defined regulatory environment would foster innovation while safeguarding the financial system, making the UK an attractive destination for crypto companies.
The Basel Committee’s recent approval of crypto asset disclosure rules for banks from 2026 aligns with Labour’s regulatory vision. Enhancing transparency and market discipline, these rules aim to strengthen financial stability.
Additionally, Labour acknowledges the increasing reliance on third-party services, such as cloud computing, which introduces new risks. The committee plans to consult on principles to develop robust standards, ensuring safe integration without compromising financial stability.
In conclusion, a Labour victory could lead to a significant shift in the UK’s crypto policy, emphasizing RWA tokenization and CBDC development. The proposed regulatory framework aims to foster innovation, attract international businesses, and maintain financial stability.
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