The United Kingdom’s cautious approach to cryptocurrency regulation is causing it to fall behind global competitors, prompting industry leaders to call for urgent reforms to foster innovation and stablecoin adoption. Former Chancellor George Osborne recently criticized the UK’s slow implementation of crypto-friendly policies, emphasizing that the nation risks being overtaken by more progressive jurisdictions such as the EU, US, and Dubai.
Industry experts attribute this lag to the Financial Conduct Authority’s 2023 regulatory regime, which introduced stringent measures including mandatory 24-hour cooling-off periods for first-time buyers and restrictive advertising rules. These requirements are viewed by market participants as barriers limiting expansion and consumer accessibility.
Coinbase CEO Brian Armstrong and other sector leaders have expressed frustration with the UK’s regulatory paralysis, contrasting it with the European Union’s enacted Markets in Crypto-Assets (MiCA) framework and the United States’ active regulatory developments. FCA data from 2024 reveals only 12% of UK adults hold crypto assets, trailing adoption rates in Singapore (15%) and Hong Kong (14%) where policies are more innovation-forward.
Market analysts and executives are urging UK authorities to introduce clearer tax guidelines and modernize oversight frameworks. They argue such reforms are critical to stimulate economic growth, attract investment, and position Britain as a competitive hub for blockchain-based financial services.