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The appointment of Rishi Sunak as Prime Minister on 25th October 2022 meant the third Prime Minister in just three months. Analysts, and market watchers, hope that the appointment will bring some much-needed political stability, shore up the performance of the Pound, and rebuild the UK’s reputation with the rest of the world. As an apparent supporter of the technology, cryptocurrency companies and investors also hope that his appointment will bring regulation to the crypto market.
UK Crypto Regulation
Cryptocurrencies are not regulated in the UK, which means there is very little protection for investors. The market is complex and viewed as being too complicated for most people, especially novice and first-time investors. But it does present opportunities. Services like Bitcode Method, which uses AI software to identify opportunities and make trades on the investor’s behalf, allow investors with relatively small pots to potentially generate profits over time while removing some of the complexities of trading.
However, the lack of regulation is still a deterrent to many. It isn’t just cryptocurrency investors that would benefit from regulation, either. It will bring stability and greater clarity to the market which, in turn, will bring in more investors. Exchanges, cryptocurrency companies, and crypto services will certainly benefit from the increase in investment.
Making The UK A Crypto Hub
With the appointment of Rishi Sunak, the market has hope for these regulations. He is the youngest Prime Minister in modern times, which sits well with the view that cryptocurrency is most popular among the younger generations. He worked in hedge funds for Goldman Sachs and, with his wife Akshata Murty, has amassed a fortune of more than £700 million. When serving as finance minister under Boris Johnson, Sunak introduced several key initiatives aimed at making “the U.K. a global hub for crypto-asset technology.”
The PM also expressed his intention to introduce Central Bank Digital Currencies (CBDCs) as well as stablecoins, which are linked to currencies or other assets and provide stability.
Recent Crypto Developments
In 2021, Sunak further suggested that the Bank of England look into developing its own CBDC and in 2022 he said that the Royal Mint would launch its own Non-Fungible Token (NFT) sometime this year. At the same time, the PM introduced new legislation that would recognise stablecoins as a legal payment method.
Just days after Sunak’s appointment as PM, the Financial Services and Market Bill was also put forward. The bill would be the next step in regulating stablecoins and so-called Digital Settlement Assets: a new term to replace crypto assets. The bill still needs to pass through the House of Lords and gain acceptance from King Charles III.
What’s Next?
Sunak’s primary concerns, having taken control when the UK’s markets were in turmoil, are to bring financial and political stability to the country. Meanwhile, the crypto world is waiting for news of the Royal Mint’s NFT, the Bank of England’s investigation into CBDCs, and the potential passing of the Financial Services and Market Bill.
Although a full regulatory framework and cryptocurrency acceptance are still some way off, Rishi Sunak as Prime Minister brings hope to the whole crypto market.
