As was reported earlier today, former Chancellor of the Exchequer Rishi Sunak has been selected to become the new Prime Minister, stepping in after Liz Truss was forced out following a rough couple of weeks. Several more comments have filtered in from Fintechs following the announcement.
Pavel Matveev, CEO of FCA-regulated crypto payments firm Wirex, commented on Sunik’s past support of crypto-assets:
“Rishi Sunak has always been vocal about his pro-crypto stance, particularly CBDCs [central bank digital currencies]. In July this year, he was pushing ahead with a new law that will pave the way for everyday crypto payments, despite the BoE [Bank of England] having fears about the stability of the technology. Back in April, Sunak laid out his ambition that he wants Britain to be a ‘global hub’ for crypto and the technology, and that stablecoins should be accepted as a form of payment. In order to do so, this means that he would likely encourage investment and the growth of businesses related to the field. We are optimistic that we can achieve this in the UK – and look forward to seeing what the government can do for the crypto sector.”
Another industry insider echoed Matveev’s pro-crypto comments. Marcus Sotiriou, Analyst at GlobalBlock (TSXV:BLOK), stated:
“Rishi Sunak has been chosen to be the UK’s next Prime Minister after Liz Truss resigned last week and could be the catalyst the UK needs to attract crypto and blockchain-related talent. Sunak led the UK’s new crypto ambitions during his time as Chancellor, as he proposed the Financial Services and Markets Bill. He planned to bring stablecoins into the scope of regulators and become a recognised form of payment. In addition, he proposed launching an official Royal Mint NFT collection in April this year, as part of his proposal to make the U.K. a crypto-friendly tech hub.”
Sotiriou noted that there has been a lack of regulatory clarity in the UK regarding digital assets, which has led firms to seek friendlier jurisdictions, seeking licenses elsewhere. He pointed to firms like crypto market maker B2C2, Blockchain.com, and Matveev’s firm Wirex, which operates in multiple jurisdictions.
“Rishi Sunak could help to provide more clarity for crypto regulation in the UK if he follows through with his aims from earlier this year. Liz Truss’ leadership led to political and economic instability, as the Pound almost reached parity with the Dollar shortly after she started her role as Prime Minister. It is believed that Rishi Sunak is significantly more competent when it comes to economic matters, hence potentially leading to less fear in UK markets in the short term. Sunak has an extremely difficult few months ahead, though, with significant economic problems for the U.K. and the Pound.”
Sotiriou also commented on the NFT sector, noting that Reddit has become a significant NFT marketplace, with around 3 million wallets being created on the Reddit Vault and 2.5 million.
In the NFT space, Reddit has quietly emerged as a major NFT marketplace competitor.
“A total of 3 million wallets have now been created on the Reddit Vault, with 2.5 million created to purchase NFT avatars. Reddit’s Polygon integration is therefore a huge success and provides optimism for Meta and Instagram’s upcoming NFT integrations,” said Sotiriou.
Tom Douie, CEO and founder of PM Alpha – a digital marketplace for asset & wealth managers, advisors and distributors providing access to private markets , added:
“Sunak is the only viable option (how Johnson could have led during the investigation of the privileges committee is beyond me, but happily, everyone came to their senses in time). It remains to be seen what policies he announces, but based on his initial leadership campaign, it will be fiscal prudence first and a longer term growth/tax-reduction plan. The resultant market stability will be helpful for the overall investment environment. A stronger pound will contribute to an easing of the cost of living crisis/inflation.”
Douie also pointed to Sunak’s financial services experience, including his tenure as Chancellor:
“… [he] will provide a positive backdrop to private enterprise in general and private markets in particular, as he will seek to realise some benefits from Brexit and encourage both domestic and international inward investment to UK plc. UK companies are on sale cheap thanks to the weak pound and historically high dry powder in private equity funds, especially in the US, will attract a lot of interest in the UK. He needs to come out of the gates strong as he has a year to set the country on the right course.”