The United Kingdom has been hostile territory for crypto and digital assets, but its new head of government might lead the country in an opposite direction. Elizabeth “Liz” Truss, from the Conservative Party or “Tories”, has been chosen to replace the former Prime Minister Boris Johnson.
In January 2018, when the price of Bitcoin and Ethereum were seeing the last days of a significant bull run into new highs, Truss posted a tweet talking about digital assets. In light of her recent victory, the crypto community has resurfaced the tweet, celebrating Truss’ words:
We should welcome #cryptocurrencies in a way that doesn’t constrain their potential. Liberate free enterprise areas by removing regulations that restrict prosperity.
Over the past hour, the tweet has seen new crypto proponents’ responses. Many asked the new Prime Minister to focus on their favorite cryptocurrencies leading to heated debates amongst the different factions.
Truss ran on a campaign to “unleash Britain’s potential”, the European nation is experiencing high inflation and a slowdown of its economic activity. In addition, Britain must re-configure its diplomatic ties in the region after leaving the European Union.
On crypto and digital assets, the country has been implementing a similar approach to the United States limiting the role of the nascent asset class in the economy. Many high-ranking government officials have called Bitcoin and digital assets a way to enable illegal activity, an unregulated asset class, and more.
In 2021, the U.K.’s Financial Conduct Authority (FCA) promised to tighten its crypto regulations. Since then, according to a report from FX Empire, blockchain and digital asset companies were experiencing “discomfort” with many migrating out of the country and to friendlier jurisdictions.
Crypto Regulation In The U.K. Worsens?
The election of Liz Truss as Prime Minister comes at a potentially good time if she follows up with her 2018 statement. Europe and Russia are fighting over energy. The Vladimir Putin-led country is cutting off Europe from its oil and gas supplies.
Putin is putting pressure on the region to force them out of enforcing U.S.-led financial sanctions. As a result, the U.K. and others have turned their eyes against cryptocurrencies as they believe digital assets might provide Russia with an exit from the sanctions.
In a recent release, the Office of Financial Sanctions Implementation from Her Majesty’s Treasury asked companies to report any activity linking crypto transactions with Russian entities. The sector has been caught between the silent war fought by Russia and Europe.
Remains to be seen if Truss will steer the country into a more friendly stand for the nascent class. At the time of writing, the markets have not reacted to the news with Bitcoin and other larger cryptocurrencies moving sideways.
