After the Labour Party’s big win in the UK elections, Prime Minister Keir Starmer is choosing his new team. One person he’s picked is Tulip Siddiq, who now has the important job of Economic Secretary to the Treasury and City Minister. This job will involve her making important decisions about digital money and how it’s controlled in the UK.

However, some people are worried about Siddiq because she’s previously discussed a possible ‘crypto crackdown’ or cracking down on digital money.

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• Economic Secretary Tulip Siddiq’s potential ‘crypto crackdown’ draws attention.
• Siddiq calls for a comprehensive government framework to handle crypto risks and opportunities.
• The UK increased crypto regulation following several major bankruptcies last year.

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New UK Crypto Regulations You Need To Know

In an article in May 2023, Siddiq said the government needs a clear plan to deal with the good and bad things that come with digital currencies. She said the old government’s way of dealing with digital money was too relaxed, like the ‘Wild West,’ and she wants more vital rules to protect people from scams.

She also said that if the Labour Party is in charge, they will work hard to attract companies that work with digital money to the UK while ensuring good rules are in place. People in the industry have noticed her ideas on digital money. In 2022, a group called CryptoUK said Siddiq was one of the top ten UK lawmakers talking about digital money in the government.

Nigel Green, the boss of a deVere Group company, thinks Siddiq could help make the UK a big place for digital money if the Labour Party won the election. However, what the Labour Party plans to do with digital money is still being determined. They’re now focused on changing the old government’s policy of sending people seeking safety to Rwanda. Some experts think housing and healthcare might be more important than making rules for the next generation of the internet, Web3.

Edouard Hindi, the boss of a Tyr Capital fund, said the government needs to decide on its plan for digital money before implementing rules for Web3.

The UK faces tough challenges like inflation, economic growth, and unemployment. Inflation was high in April 2024 because of problems with getting goods and rising energy costs.

After some big companies went bankrupt last year, the UK is one of the countries that has been working harder to control digital money. The Financial Conduct Authority (FCA) oversees this and focuses on preventing money laundering and protecting people. Last year, the FCA made new rules requiring digital money businesses to register with them and approve their marketing materials.

Follow these rules to avoid big trouble, like hefty fines and up to two years in prison, for UK money exchanges, whether based in the UK or other countries. Because of this, big digital money exchanges like Coinbase, Revolut, and Binance have updated their apps to follow the new rules.

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