- UK crypto leaders urge Prime Minister Keir Starmer’s government to appoint a dedicated crypto envoy and develop a national blockchain strategy.
- Industry groups warn that the UK risks falling behind the U.S., Dubai, and Singapore without a clear, unified government approach.
- Despite tighter FCA regulations, industry leaders argue for more proactive engagement to unlock the sector’s £57 billion potential.
A coalition of top UK trade associations has urged Prime Minister Keir Starmer’s administration to take decisive action in fostering the nation’s crypto and blockchain ecosystem. In a recent letter to Varun Chandra, Starmer’s special adviser on business and investment, six prominent digital economy groups called for the appointment of a dedicated crypto envoy and the development of a national strategy to enhance investment and innovation in the sector.
The letter was signed by key industry organizations, including the UK Cryptoasset Business Council, Global Digital Finance, The Payments Association, the Digital Currencies Governance Group, the Crypto Council for Innovation, and techUK. These groups emphasized that a more coordinated approach could unlock billions in economic growth, create jobs, and cement the UK’s position as a global fintech leader.
With the U.S. making bold moves such as former President Donald Trump’s crypto-friendly stance and the appointment of a dedicated “crypto czar” industry leaders warned that the UK risks lagging behind unless swift action is taken.
“The UK has all the ingredients to lead in blockchain and digital assets strong talent, capital access, world-class universities, and a respected regulatory framework,” the letter stated. “What’s missing is a clear, unified government approach.”
UK Crypto Future at Risk Without Action
To compete on the global stage, the coalition is pushing for a government-backed envoy to spearhead digital currency and blockchain policy. This role would act as a bridge between industry leaders, regulators, and policymakers ensuring that the UK remains attractive for digital asset firms and investors.
The coalition advocates for a national action plan that includes a government-backed concierge service to attract high-potential startups, recognition of blockchain’s role in advancing AI and quantum computing for public services, and an industry-government-regulator forum to enhance transparency and collaboration.
Digital currency industry figures, such as Tom Griffiths, co-founder of BitCompli, echoed these concerns. In a LinkedIn post, Griffiths warned that while the Financial Conduct Authority (FCA) has expertise, the UK is losing ground to crypto-friendly jurisdictions like Dubai, Singapore, and parts of the EU.
“If the FCA doesn’t act now, the UK risks missing out on the long-term economic benefits this sector offers,” Griffiths cautioned.
UK Tightens Crypto Rules as FCA Increases Oversight
The UK government has ramped up digital currency regulation, particularly after last year’s high-profile bankruptcies. In September, a new bill clarified digital assets’ legal standing under UK property laws, classifying digital currency, NFTs, and carbon credits as “things” and “personal property.”
Meanwhile, the FCA has tightened rules, requiring crypto firms to register with the regulator and obtain approval for marketing materials. Exchanges must now provide clear risk warnings to customers.
Despite these steps, industry leaders argue that more proactive government engagement is needed to drive growth and prevent the UK from falling behind in the blockchain revolution.
With estimates suggesting that the digital currency sector could contribute up to £57 billion ($73.6 billion) to the UK economy over the next decade, the question remains: Will Starmer’s government step up to the challenge?
Related | Cryptocurrency Whale Faces $2.17 Million Loss After $ACT Token Crash