LONDON – UK Prime Minister Keir Starmer has appointed Tulip Siddiq as the new Economic Secretary to the Treasury and City Minister, entrusting her with oversight of financial services, including the burgeoning crypto sector.
Following Labour’s landslide victory in the recent election, Siddiq steps into the role after serving as Shadow City Minister. Her appointment aligns with Labour’s vision to support the Bank of England’s digital-pound initiatives and position the UK as a hub for tokenization.
In a 2022 article for the New Statesman, Siddiq highlighted both the potential and risks of the crypto and blockchain industry. “Properly regulated crypto assets have the potential to transform our economy and the financial services sector,” she wrote. Siddiq emphasized the role of blockchain technology in enhancing financial transparency and generating high-skilled jobs across the UK.
Siddiq, who represents Hampstead and Highgate, has also been vocal about the need to tackle crypto fraud. During parliamentary debates, she called for stronger measures to combat fraud, prompting the Conservative Party’s City Minister at the time, Andrew Griffith, to cite the Economic Crime and Corporate Transparency Act. This legislation, now law, was driven by the Home Office, currently led by Yvette Cooper.
The previous Conservative government aimed to establish the UK as a crypto hub, enacting legislation to regulate crypto activities and initiating consultations on a phased regulatory approach, beginning with stablecoins. Although Siddiq’s predecessor, Bim Afolami, aimed to implement secondary legislation for stablecoins and staking, these plans were not realized before the election.
The crypto community anticipates that the Labour government will advance these regulatory initiatives. Siddiq’s appointment signals a continued focus on balancing innovation with robust regulation in the financial services sector.
Siddiq’s dual focus on regulation and innovation suggests a balanced approach to fostering the UK’s crypto industry, ensuring it contributes positively to the economy while mitigating associated risks.
