On this episode of Understanding Crypto, James Burtt and Paul Abercrombie explore how the crypto space is currently impacted by Prime Minister Boris Johnson’s resignation. Paul expresses the market's concerns following the resignation of one of cryptocurrency's fiercest advocates, Rishi Sunak. Despite this uncertainty Paul is still hopeful that the newly elected leader of the Conservative party will be pro-crypto and spearhead the campaign for crypto-inclusive policies.

Crypto in Limbo 

Crypto enthusiasts are uncertain about the future of the market after a series of high-profile resignations including that of the Prime Minister Boris Johnson.The UK government has appointed a replacement for one of the first resignations, Chancellor of the Exchequer Rishi Sunak, a champion for the UK crypto industry. Through a series of workshops, Sunak’s FCA-led effort, Crypto Sprint, aimed to expedite drafting regulations geared at fostering innovation in the crypto industry. [Listen from 1:29]

Presently, the UK crypto industry is at a standstill until a new leader and cabinet of the Conservative Party are chosen. "That's worrying in this crypto space because there were so many initiatives that were getting traction," says Paul. The next leader may elect a chancellor not supportive of cryptocurrencies, as was the case with earlier cabinets formed under the same party. “So in the short term it is a worry and a concern for the UK crypto industry because now we're left in limbo as to what's going on in the long term” laments Paul. Yet there still remains the possibility that Rishi Sunak can be chosen as the future Prime Minister of the United Kingdom. If this occurs all cryptocurrency-related initiatives would be continued and accelerated, solidifying crypto as a mainstream currency. [Listen from: 5:22]

Crypto supporters are cautious and fearful that Rishi Sunak's pledge to turn the UK into a hub of cryptocurrency would not be realized. These supporters include many owners of crypto-related businesses who were depending on the FCA to push regulations. Notably, since the Prime Minister's resignation, this issue has not only affected cryptocurrencies but has also caused fiat market fluctuations. Paul hopes that the new cabinet would mirror the efforts of  some countries where politicians have continued to use their power to normalize cryptocurrencies within the mainstream market. “So you're seeing countries around the world making big steps and shifts in the political landscape to accommodate crypto and blockchain technology,” he remarks. Paul concludes that the true effects of the Prime minister’s resignation would be revealed in time. [Listen from:8:55 ]

Key Takeaway

• Cryptocurrency policy remains in limbo until a new leader of the Conservative Party is elected.

Resources

James Burtt on Twitter | LinkedIn | Instagram | Clubhouse

Paul Abercrombie on Website | Twitter | LinkedIn | Instagram