Keir Starmer Leads Labour Party to Victory in UK General Election Unclear Cryptocurrency Regulatory Policies

Keir Starmer Leads Labour Party to Victory in UK General Election Unclear Cryptocurrency Regulatory Policies

Keir Starmer Leads Labour Party to Victory in UK General Election Unclear Cryptocurrency Regulatory Policies

According to a report by CoinDesk, the Labour Party won the UK general election on Thursday (4th) with an overwhelming majority, ending the Conservative Party’s 14-year rule. Labour leader Keir Starmer is set to become the new Prime Minister of the UK. While the regulatory direction regarding cryptocurrencies under their legislative agenda remains unclear, the Labour Party has indicated its intention to advance legislation related to tokenization.

Reportedly, Labour has secured more than the necessary 326 seats to form a majority in the House of Commons, with 388 seats. According to the BBC’s forecast, Labour may acquire 410 seats, while the Conservative Party is expected to only have 144 seats. Neither party mentioned the cryptocurrency industry in their election manifestos. Labour’s focus lies primarily on the economy, security, and the national healthcare service.

UK Prime Minister Rishi Sunak has acknowledged defeat and apologized to supporters. In his concession speech, he stated, “Tonight, the British people have delivered a sobering verdict,” taking responsibility for the Conservative Party’s loss in the election.

Cryptocurrency Policy:
Due to its long-standing governance, the Conservative Party has a clearer stance on cryptocurrencies. They have expressed a desire to establish the UK as a hub for cryptocurrencies and introduce legislation to regulate them. The Labour Party, on the other hand, has declared support for the Bank of England’s digital pound project. A decision on issuing a central bank digital currency (CBDC) is expected between 2025 and 2026. Prior parliamentary approval is required for relevant legislation.

In January of this year, the Labour Party unveiled a financial services plan that included the commitment to “advance legislation related to tokenization” to position the country as a hub for security tokenization.

Before the UK general election, members of the cryptocurrency community interviewed by CoinDesk suggested that the Labour Party has more work to do, including passing necessary regulations identified by the previous government and enhancing guidelines on promotional initiatives for the cryptocurrency industry.