Philip Hammond, a prominent advocate for cryptocurrency and the former Chancellor of the Exchequer for the United Kingdom (2016-2019), is facing scrutiny over potential breaches of lobbying regulations for former ministers.
A report by the Financial Times on Feb. 9 alleges that in March 2021, Hammond was involved in communications between undisclosed Treasury officials and the then Economic Secretary for the Treasury, John Glen, as well as Dmitry Tokarev, the CEO of crypto firm Copper. Documents obtained through a Freedom of Information Act request suggest Hammond’s role as an intermediary.
Per the report, Glen instructed officials to engage Hammond as a liaison for Tokarev. Subsequently, Hammond conversed with Glen, relaying Tokarev’s positive impression of the meeting with Treasury officials and expressing Copper’s concerns about the pace of regulatory changes for crypto companies.
Hammond joined Copper as a senior advisor in August 2021, raising concerns about a conflict of interest. Given his former role as chancellor, he would have needed clearance from the Advisory Committee on Business Appointments to assume any position in the private sector connected to lobbying efforts with his former department.
In response to the allegations, Hammond denies engaging in lobbying activities. He maintains that his interactions with Glen were not lobbying and refutes claims of arranging meetings between the Treasury and Copper, deeming it inappropriate. Hammond characterizes his communication with Glen as routine contact between political associates.
A spokesperson for the U.K. Treasury denies any wrongdoing, asserting that Treasury officials regularly engage with crypto firms to better understand the sector and shape policy in a balanced and safe manner.
In June 2022, Hammond expressed concerns about the U.K.’s lag in cryptocurrency regulation compared to its counterparts in the European Union. He attributed this delay to potential bandwidth and capacity issues within regulatory bodies, highlighting the need for agility in embracing new technologies.
The situation underscores the complexities surrounding the intersection of government officials, private sector interests, and regulatory frameworks in emerging industries like cryptocurrency.
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