UK Prime Minister Keir Starmer appointed Tulip Siddiq as Economic Secretary to the Treasury and City Minister on Tuesday. Siddiq, who previously served as the Shadow City Minister, will now oversee financial services, including the crypto sector. This appointment follows the Labour party’s landslide election victory last week.
Siddiq’s Stance on Crypto Regulation
Tulip Siddiq has consistently advocated for balanced crypto regulation. In a New Statesman article two years ago, she highlighted both the risks and potential of the crypto and blockchain industry. Siddiq emphasized the transformative potential of properly regulated crypto assets on the economy and financial services sector. Representing London’s Hampstead and Highgate constituency, she noted that many innovative companies are leveraging blockchain technology to enhance financial transparency and create high-skilled jobs across the UK.
Addressing Crypto Fraud
Siddiq has also been vocal about addressing crypto fraud. In parliamentary debates, she urged for stronger measures to mitigate fraudulent activities in the crypto space. Responding to her concerns, then-Conservative City Minister Andrew Griffith referenced the Economic Crime and Corporate Transparency Act, aimed at tackling fraud, which passed into law last year. This legislation, promoted by the Home Office, will now be overseen by Yvette Cooper.
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The Labour party has pledged support for the Bank of England’s digital-pound plans and aims to make the UK a tokenization hub. This vision aligns with the previous Conservative government’s objective to establish the UK as a leading crypto hub. Last year, the Conservatives passed legislation to regulate crypto as a financial activity and initiated consultations on a phased regulatory approach starting with stablecoins.
Continuity and Future Plans
Siddiq’s predecessor, Bim Afolami, had committed to introducing secondary legislation for stablecoins and staking but was unable to complete this before the election. The crypto community anticipates that the new Labour government will advance these plans, continuing the momentum towards comprehensive crypto regulation.
Tulip Siddiq’s appointment as City Minister marks a significant step in the UK’s approach to crypto regulation. With her balanced perspective on mitigating risks and harnessing the potential of crypto assets, Siddiq is well-positioned to drive the UK’s vision of becoming a tokenization hub. The crypto community remains optimistic about the Labour government’s commitment to advancing regulatory frameworks that support innovation and transparency in the financial sector.
