Tulip Siddiq ignored UK crypto sector before resigning

• Tulip Siddiq did not prioritize cryptocurrencies in the UK
• A16z closes London office following political changes
• UK cryptocurrency regulation remains uncertain

Former UK Economic Secretary to the Treasury Tulip Siddiq has stepped down without having held a single meeting with cryptocurrency companies, according to industry sources. The lack of dialogue with the industry raises questions about the UK government’s commitment to advancing regulation of the sector. Reports suggest the minister has even canceled engagements previously scheduled, frustrating expectations of a more favorable environment for cryptocurrencies in the country.

Siddiq took office in July 2024 under a Labour Party government, and was tasked with overseeing financial services and implementing the UK's regulatory roadmap for cryptocurrencies, due by 2026. However, his departure in January 2025, prompted by pressure linked to an anti-corruption investigation, ended a term marked by few concrete actions for the sector.

The lack of engagement with crypto companies is seen as a negative sign by the market. “Perception is very important for entrepreneurs, especially if you are an American investor,” said one industry insider. Siddiq’s lack of positioning comes at a time when other countries, such as the United States, are demonstrating a clearer approach towards cryptocurrencies, driven by recent political changes.

Meanwhile, documents obtained through a freedom of information request revealed that the previous Conservative government spent five years trying to lure investment giant Andreessen Horowitz (a16z) to London. The firm had opened a crypto office in the city in 2023, but announced its closure in early 2025. The company’s chief operating officer for the crypto division, Anthony Albanese, said a16z had chosen to focus its efforts on the United States “given the strong political momentum of the new administration.”

a16z’s shift in strategy reflects the growing influence of politics on the crypto market. When the company opened its London office, the regulatory environment in the United States was considered hostile to the sector. In April 2023, in a meeting with then-Democratic Secretary Andrew Griffith, Brian Quintenz, a16z’s global head of policy, stated that “the lack of regulatory clarity in the U.S. is helping bad actors and hurting good ones, as those who follow ethical and regulatory practices are at a competitive disadvantage.”

However, the landscape has changed significantly after industry lobbyists raised $197 million for the US election and Donald Trump’s return to the presidency. With the political shift, the outlook for cryptocurrencies in the United States has become more favorable, leading companies to reconsider their international expansion strategies.

Siddiq’s departure and the closure of a16z’s UK office raise questions about the future of digital asset regulation in the country. Data from the Financial Conduct Authority (FCA) indicates that cryptocurrency adoption among Britons continues to grow, with 12% of the adult population investing in crypto assets by November 2024, up from 10% in 2022.

The UK government remains committed to establishing a comprehensive regulatory framework by 2026, but a lack of engagement with the sector raises concerns about its implementation. While the US is pushing ahead with new policies and investments in the sector, the UK risks losing relevance in the global race for blockchain-based financial innovation.