CoinJie.com reports:
The Labour Party has officially won the UK general election with an overwhelming victory over the Conservative Party, yet the overall future of cryptocurrency in the UK remains largely uncertain.
At the time of writing, the Labour Party secured 410 seats, comfortably surpassing the target of 326 majority seats. The Conservative Party, which has dominated British politics since 2010, only managed to secure 119 seats, a disappointing outcome.
With the end of Conservative rule, the cryptocurrency industry is now seeking guidance from Labour Party leader Keir Starmer. Unfortunately, for cryptocurrency enthusiasts, Starmer has remained relatively silent on his stance regarding cryptocurrencies.
The Labour Party manifesto did not mention “digital assets” or “cryptocurrencies,” nor were these terms featured in Starmer’s campaign. However, in a document titled “Financing Growth,” released in January, the party expressed plans to “embrace tokenization and central bank digital currencies (CBDCs).”
The document stated: “Tokenization can enhance liquidity, provide new asset classes and asset segmentation, and strengthen risk management (by reducing counterparty and other operational risks).”
“Therefore, a future Labour government will strive to make the UK a global leader in tokenization.”
Additionally, Labour plans to introduce a regulatory sandbox for financial market infrastructure to address regulatory bottlenecks in tokenization and explore the potential of issuing tokenized “green bonds” through the Debt Management Office to test the technology’s impact and create demand for tokenized assets.
However, Labour did not mention cryptocurrency legislation, blockchain, or establishing a regulatory framework to protect investors.
Nigel Green from deVere Group stated, “Thus far, Starmer’s position on cryptocurrencies remains somewhat ambiguous. The cornerstone of making the UK a global cryptocurrency hub lies in establishing a clear, comprehensive regulatory framework.”
“This approach will make the UK an attractive destination for cryptocurrency companies seeking a stable and supportive regulatory environment. By investing in blockchain technology and supporting startups, the UK can pioneer new applications and services in the cryptocurrency field.”
Green also called for “government-supported initiatives such as research funding, tax incentives for blockchain startups, and collaboration with academic institutions” to drive industry growth.
In May, the London Stock Exchange approved Europe’s first crypto ETP, though its debut performance was lackluster.
“For Starmer and the Labour Party, the strategic imperative is clear. By positioning the UK as a global leader in cryptocurrencies, they can promote economic growth, create job opportunities, and foster innovation. The potential benefits extend beyond the cryptocurrency industry, enhancing the overall financial ecosystem of the UK and solidifying its role as a forward-looking, vibrant economy.”