Exodus of pro-crypto financial regulators in UK amid allegations of misconduct in PM's government

Published at: July 6, 2022

Many officials responsible for regulating the United Kingdom’s financial system have resigned following allegations Prime Minister Boris Johnson exercised “poor judgement” in appointing a member of the government.

In a letter to Johnson posted to Twitter on Wednesday, Economic Secretary to the Treasury John Glen said his decision to resign was prompted by “recent events concerning the handling of the appointment of the former deputy chief whip” as well as the Prime Minister’s “poor judgment” in addressing the incident. Glen added that “vital reforms" to the country’s financial services were ready to be presented to Parliament.

With deep regret I am resigning from the government.I will not be doing media interviews regarding this. pic.twitter.com/IT0C50g8My

— John Glen MP (@JohnGlenUK) July 6, 2022

Glen’s resignation followed that of Rishi Sunak — chancellor of the Exchequer for the U.K. — who on Tuesday announced he would also be leaving Johnson’s government for similar reasons. Sunak said he would be stepping down amid “serious challenges” for the global economy, including the effects of the pandemic and war in Ukraine:

“The public rightly expect government to be conducted properly, competently and seriously. I recognise this may be my last ministerial job, but I believe these standards are worth fighting for and that is why I am resigning.”

Both Glen and Sunak will remain members of parliament for their respective regions of Salisbury and Richmond. During Glen’s time in the U.K. government, he promoted reforming the country’s tax system to "make it work more easily for crypto" and called out policies making it difficult for crypto firms to register with the Financial Conduct Authority.

“If crypto technologies are going to be a big part of the future, then we, the U.K., want to be in — and in on the ground floor,” said Glen at the Innovate Finance Global Summit in April.

In 2020, Sunak said the U.K government would prioritize financial technology including central bank digital currencies and stablecoins, aiming for the country to keep pace with innovation. He has been behind many subsequent proposed reforms promoting the adoption of cryptocurrencies and stablecoins.

Many have called for Johnson’s resignation following reports the prime minister knew former deputy chief whip Chris Pincher had allegedly groped two men but chose to promote him to a senior position in government. Glen, along with Health Minister Sajid Javid, were among the latest to resign on Tuesday, bringing the total number to 27.