UK Labour’s City Minister Snubbed Crypto Industry Before Resignation, Report Says

  • Former UK Economic Secretary Tulip Siddiq avoided meetings with cryptocurrency companies during her tenure.
  • UK Conservative government spent five years courting a16z to establish London presence.
  • A16z closed its UK office, citing preference for US market conditions.
  • Political shifts in US crypto regulation influenced a16z’s strategic withdrawal from UK.
  • UK crypto regulation roadmap faces uncertainty following Siddiq’s resignation.

Former Economic Secretary to the Treasury Tulip Siddiq maintained distance from cryptocurrency industry representatives during her tenure, according to industry sources speaking with Sifted. This revelation comes as major venture capital firm Andreessen Horowitz (a16z) announces closure of its London operations.

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Political Shifts and Regulatory Impact

Siddiq, who resigned in January 2024 amid an anti-corruption investigation, had overseen the development of the UK’s 2026 cryptocurrency regulatory framework. Industry insiders criticized her apparent lack of engagement, with one source telling Sifted: “The optics mean a lot to business guys particularly if you’re an American VC.”

A16z’s Strategic Withdrawal

Anthony Albanese, COO of a16z’s cryptocurrency division, explained the firm’s exit from London, citing stronger policy momentum in the United States. This marks a reversal from 2023, when the US regulatory environment prompted a16z’s expansion into the UK market.

US Political Landscape Reshapes Strategy

The cryptocurrency sector’s political influence in the US has grown substantially, with industry lobbyists investing $197 million in election-related activities. A16z founders Marc Andreessen and Ben Horowitz have aligned themselves with pro-cryptocurrency political positions, reflecting the industry’s shifting focus toward US market opportunities.

During an April 2023 meeting, a16z’s global policy head Brian Quintenz had expressed concerns about US regulatory uncertainty, stating: “The lack of regulatory clarity in the US is helping bad actors and hurting good ones, as those who follow ethical and regulatory good practice are left at a competitive disadvantage.”

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