UK Crypto Scene Hopes for a Labour Boost

Incoming Chancellor Rachel Reeves has "shown openness to the tech sector". File image. Source: Keir Starmer campaign.

A Labour government will have a unique opportunity to reshape the UK's financial landscape by positioning it as a global cryptocurrency hub, says a leading financial adviser.

"For Starmer and Labour, the strategic imperative is clear. By positioning the UK as a global leader in cryptocurrency, they can drive economic growth, create jobs, and nurture innovation," says Nigel Green, CEO of deVere Group.

The call comes on the day the UK votes in a General Election that is set to result in a landslide win for Keir Starmer's Labour Party.

Heading into the election, Labour's position on cryptocurrencies and the UK's place in this growing industry has been piecemeal. Green says Starmer’s stance on crypto remains somewhat nebulous, but incoming Chancellor Rachel Reeves has shown openness to the tech sector.

Tulip Siddiq - the shadow City Minister - has said Labour would transform the UK into a global centre for tokenized assets if victorious.

The Party's January finance platform document hinted at a progressive approach by mentioning "embracing securities tokenisation and a central bank digital currency" as part of their vision for the UK.

"The cornerstone of establishing the UK as a global crypto hub lies in creating a clear, comprehensive regulatory framework, says Green. "A well-defined regulatory environment will provide clarity and security to businesses and investors. By working closely with industry leaders and stakeholders, a Labour government can ensure that regulations are balanced, fostering innovation while safeguarding the financial system."

With the right approach, Green thinks Labour can make the UK an attractive destination for crypto companies looking for a stable and supportive regulatory climate.

"By investing in blockchain technology and supporting startups, the UK can lead in developing new applications and services in the crypto space," says Green. "Government-backed initiatives, such as funding for research and development, tax incentives for blockchain startups, and partnerships with academic institutions, can drive growth."

deVere also urges the next government to consider establishing special economic zones with favourable regulations for crypto businesses that could create hubs of innovation and attract global talent.

The City of London - one of the world's financial centre's - was founded on financial innovation, and some believe it has become too cautious since the 2008 financial crisis.

But Green says that by embracing cryptocurrency and blockchain technology, Starmer can enhance the status of the City of London.

"The City’s robust financial infrastructure, combined with progressive crypto regulations, can attract international businesses and investors," he argues. "The potential benefits extend beyond the crypto sector, enhancing the UK’s overall financial ecosystem and cementing its role as a forward-thinking, dynamic economy."