Steve Baker, a former UK Minister of State for the Northern Ireland Office, has recently been approved to join Axiom, a venture capital firm that specializes in Bitcoin investments, as a paid adviser. This new appointment follows a thorough review by the UK’s Advisory Committee on Business Appointments (ACOBA), which determined there were no conflicts of interest arising from Baker’s previous ministerial role.
Regulatory Approval and Principles of Public Life
A government record released on November 28 indicates that Baker sought ACOBA’s advice regarding his transition to the private sector. The committee’s approval of Baker’s appointment underscores their commitment to the “7 Principles of Public Life,” which are foundational guidelines ensuring public servants operate with selflessness, integrity, and accountability.
Baker’s Role at Axiom Venture Fund II
As an adviser to Axiom, Baker will provide insights for the firm’s second investment initiative, the Axiom Venture Fund II. This fund is specifically tailored to invest in companies operating within the Bitcoin ecosystem. Axiom is recognized for its cautious stance towards cryptocurrency, having announced in August its intention to raise $75 million for this new fund. The firm emphasizes its dedication to investing in sustainable Bitcoin ventures, aware of the potential pressures from investors that might lead companies to prioritize short-term token issuance over long-term stability.
Conditions Surrounding Baker’s Transition
ACOBA has acknowledged various risks linked to Baker’s shift to a private role, particularly given the volatile nature of the cryptocurrency sector. Concerns include the potential for misuse of confidential information, the risk of improper influence through government connections, and the possible reputational damage to public institutions. To mitigate these risks, Baker’s appointment comes with specific restrictions: he is barred from using any government knowledge in his advisory role and is prohibited from lobbying on behalf of Axiom for two years. Moreover, he cannot advise the firm on topics directly tied to his previous ministerial duties.
Baker’s Vision for the Future
In a statement, Baker expressed his enthusiasm for joining Axiom, stating, “By building the infrastructure of sound money, investors and entrepreneurs can foster a more stable and free economic system, ultimately creating a foundation for sustainable, just, and inclusive prosperity.” He believes that Axiom’s work will significantly contribute to this vision, remarking on the importance of creating a well-functioning social safety net and recognizing the long-term consequences of an unsustainable system.
UK’s Plans for Crypto Regulation
In related news, the United Kingdom is set to unveil a comprehensive regulatory framework for the cryptocurrency market by early next year. Economic Secretary to the Treasury Tulip Siddiq recently highlighted that this proposed framework aims to unify regulations for stablecoins and staking services. He noted, “Doing everything in a single phase is simpler and it just makes more sense.” The delay in legislative measures had previously caused some companies to hesitate in investing in the UK, particularly as the European Union prepares to implement its Markets in Cryptoassets (MiCA) regulation by the end of the year.
Industry experts, like Dante Disparte, global head of policy at Circle, have indicated that the UK is expected to finalize regulations for stablecoins in the coming months, reinforcing the belief that significant regulatory changes are imminent. “I think we’re within months, not years,” he stated, signaling a renewed optimism in the UK’s regulatory landscape.