The UK government has appointed Emma Reynolds as the new Economic Secretary tasked with overseeing central bank digital assets and digital currencies, along with the wider financial sector.
The appointment was announced on Tuesday following the resignation of Tulip Siddiq, who set the government’s crypto agenda weeks ago.
It is not yet clear what effect the appointment of Reynolds, a former Parliamentary Secretary to the Treasury, will have on the country’s crypto plans. However, the Financial Conduct Authority has already set out its agenda for a new crypto regime.
Reynolds previously worked at TheCityUK, a trade body, as managing director and in a discussion on a bill in 2022 said there were positives to the UK taking a second step towards the European Union and learning from it.
“CryptoUK and its members have a long-term working relationship with the UK Government and as such we welcome the appointment of Emma Reynolds as the new City Minister,” a spokesperson for the CryptoUK lobby group said.
Siddiq, the former secretary, resigned on Tuesday amid growing pressure over an anti-corruption investigation in Bangladesh. Siddiq, whose aunt was former Bangladesh Prime Minister Sheikh Hasina, was named in an investigation looking into allegations that her family had embezzled funds.
In a letter, Siddiq said he had referred himself to the independent adviser on ministerial standards, Sir Laurie Magnus, where he was able to share full details of his finances and living conditions. Magnus had found that Siddiq “had not violated the ministerial code,” his letter said.
However, continuing his work would be a distraction for the government, he said.
Siddiq had just announced that the new UK government, led by the Labor Party, would follow the regulatory plans set out by its predecessor, the Conservative Party. Legislation on cryptocurrencies and stablecoins is expected to come out early this year.
Many expect the United Kingdom to take steps to regulate the crypto sector as other major nations such as the European Union set up their crypto regimes and the United States expects crypto-friendly Donald Trump to begin his presidency next week.
