A Labour government in the UK could impact the crypto sector by seeing a focus on real-world asset tokenization and the development of CBDC technology, according to deVere Group CEO Nigel Green.
According to one financial services executive, Labour leader Keir Starmer should pursue the current Conservative Prime Minister Rishi Sunak’s ambition to make the country a “global crypto hub.”
DeVere Group CEO Nigel Green said that although Starmer’s stance on crypto remains somewhat nebulous, the party’s shadow finance minister Rachel Reeves “has shown openness to the tech sector,” and shadow city minister, Tulip Siddiq, “has boldly stated that Labour would transform the UK into a global centre for tokenized assets if victorious.”
Green said that the Labour Party has highlighted in planning documents how it would “embrace securities tokenization and a central bank digital currency (CBDC)” as part of its vision for the UK.
A clearly defined regulatory framework is needed.
“The cornerstone of establishing the UK as a global crypto hub lies in creating a clear, comprehensive regulatory framework,” Green noted. Green was referring to current Prime Minister Rishi Sunak’s stated goal in April 2022, when he was Chancellor of the Exchequer, to make the UK a “global crypto hub.”
He added that a well-defined regulatory environment could provide clarity and security to businesses and investors in the country.
“By working closely with industry leaders and stakeholders, a Labour government can ensure that regulations are balanced, fostering innovation while safeguarding the financial system. This approach would make the UK an attractive destination for crypto companies looking for a stable and supportive regulatory climate,” he added.