The UK's Labour Party has won today's General Election; according to one financial services executive, Labour leader Keir Starmer should pursue the current Conservative Prime Minister Rishi Sunak's ambition to make the country a global crypto hub.

Labour's Crypto Potential

As the nation heads to the polls on Friday, deVere Group CEO Nigel Green said that although Starmer's stance on crypto remains somewhat nebulous, the party's shadow finance minister, Rachel Reeves, "has shown openness to the tech sector."

Shadow city minister Tulip Siddiq "has boldly stated that Labour would transform the UK into a global center for tokenized assets if victorious."

In an email sent to The Block, Green said that the Labour Party has highlighted in planning documents how it would "embrace securities tokenization and a central bank digital currency (CBDC)" as part of its vision for the UK.

Need for Regulatory Framework

Green said a clearly defined regulatory framework is needed, adding, "The cornerstone of establishing the UK as a global crypto hub lies in creating a clear, comprehensive regulatory framework."

In his comments, Green referred to goals Prime Minister Rishi Sunak revealed he had in April 2022 when he was Chancellor of the Exchequer. Those plans included making the UK a "global crypto hub." Green also said a well-defined regulatory environment for crypto and its consumers will provide clarity and security to businesses and investors in the country.

"By working closely with industry leaders and stakeholders, a Labour government can ensure that regulations are balanced, fostering innovation while safeguarding the financial system."

Green emphasized how the City of London has historically been a leading global financial center. "By embracing cryptocurrency and blockchain technology, Starmer can enhance the City's status. The City's robust financial infrastructure and progressive crypto regulations can attract international businesses and investors," Green added.

He also said that the combination of London's position as a financial center and a clearly defined regulatory framework would position the UK as a global leader in cryptocurrency, "driving economic growth, creating jobs, and nurturing innovation."

Coinbase Advocacy Group's Proposal

In mid-June, Stand With Crypto -- an advocacy group started by Coinbase -- outlined seven UK crypto policy recommendations ahead of today's General Election.

The lobbying group launched in London with an event at the House of Commons in May organized by its adviser, former Conservative Chancellor of the Exchequer George Osborne.

The crypto advocacy group's manifesto said the next UK government should promote the country as a global web3 and tokenization hub and establish a joint industry-government task force to identify opportunities to position the UK as such.

Stand With Crypto UK recommended swiftly legislating for crypto assets, adhering to the principle of "same risk, same regulatory outcome" to protect consumers and foster industry growth. This includes regulating fiat-backed stablecoins to encourage competition in digital payments.

The group also prioritized recognizing staking as a regulated activity and ensuring retail participation, which it said is crucial for the functioning and innovation of proof-of-stake blockchains.