- UK trade bodies urged the government to act on crypto with a dedicated envoy for growth.
- The global crypto race intensifies, with the UK at risk of falling behind without clear government action.
The U.S. crypto landscape under Donald Trump’s administration has set a precedent, sparking global debates on regulatory strategies.
British trade associations have responded by urging Prime Minister Keir Starmer’s office to appoint a dedicated crypto envoy.
UK shifts its focus on digital assets and blockchain
In a letter written on the 31st of March, six UK digital economy trade bodies addressed Varun Chandra, Prime Minister Starmer’s business and investment adviser. They emphasized the need for a strategic focus on digital assets and blockchain to strengthen the UK’s position.
Referring to the U.S. policy shift and its crypto czar, they highlighted the importance of fostering investment and innovation. The group also stressed the need to create jobs and boost confidence in the UK’s crypto industry.
They wrote,
“With the US, Singapore, UAE, and Hong Kong accelerating investment and government support in this space, the UK must remain proactive and competitive to attract businesses, talent, and capital.”
The coalition highlighted the significant economic potential of the crypto sector, projecting that the UK economy could see a boost of £57 billion ($73.6 billion) over the next decade.
In fact, by 2030, the industry’s influence could extend even further, contributing an estimated £1.39 trillion ($1.8 trillion) to the global GDP.
Why is it important for the UK to take this step?
In reply to the letter on LinkedIn, Tom Griffiths, Co-Founder and Managing Partner of BitCompli, a crypto compliance advisory firm, noted,
“The Financial Conduct Authority has a lot of talent and a good sight of plans, but the UK is definitely losing pace with Dubai, Singapore, and other EU jurisdictions.”
He further added,
“Now is the time for the FCA to act or the UK will lose out on this huge opportunity, which is digital assets and all the benefits this sector can bring, not only now but over the next 20 years.”
Despite the growing recognition of digital assets, the UK government has yet to take decisive action in designating cryptocurrency as a strategic sector.
While initiatives like the proposal for a central bank digital currency and efforts to integrate blockchain into financial services, industry leaders stress the need for more substantial steps.
Other countries and their stance on crypto
This contrasts with the U.S. stepping up with their Strategic Bitcoin [BTC] Reserve plan, influenced by former President Trump.
However, not all countries are following suit, with nations like Russia, South Korea, and Japan expressing caution.
Russia has suggested banning cryptocurrency settlements outside the Experimental Legal Regime to tighten control over digital transactions.
Meanwhile, South Korea and Japan remain doubtful about adding Bitcoin to their foreign exchange reserves, showing cautious resistance.
Similarly, Switzerland and the European Central Bank have maintained a cautious approach toward Bitcoin’s role in national reserves.
