UK Regulatory Delay Hurts Plans to Make Country a Global Crypto Hub, Experts Say: CNBC
The country lags behind other states in creating a favorable environment for crypto companies.
Author: Camomile Shumba | Edited by: Sheldon Reback May 1, 2025, 1:45 pm
What you need to know:
- Industry leaders say the UK needs to take more steps to establish itself as a crypto hub and keep up with countries like the US.
- The government has only recently introduced legislation regulating the digital asset sector.
The UK must do more to establish itself as a global hub for the crypto economy to avoid being left behind by countries like the US, industry officials say.
The country has been voicing its intention to become a crypto hub since 2022, long before the current Labour government was formed, but it was only this week that it began collecting feedback on a draft bill for the sector.
Meanwhile, the European Union has already passed the Markets in Cryptocurrency Asset Regulation (MiCA), which establishes a uniform regime for the entire bloc, and the new administration of US President Donald Trump is promoting the development of the sector and easing regulation.
“If I look at the speed of innovation, I think the US is ahead — although they have their own challenges. But look at Singapore and Hong Kong — they are innovating much faster,” Jaidev Janardhana, CEO of digital bank Zopa, told CNBC. “I think we are still ahead of the EU, but we can’t rest on our laurels.”
Trump, meanwhile, is calling on departments to pursue crypto-friendly policies, and a stablecoin bill is making its way through the Senate. The stablecoin sector is expected to grow 10-fold to $2 trillion within three years of the legislation’s passage, Standard Chartered predicts.
“Other jurisdictions have started to embrace this opportunity,” Cassie Craddock, managing director for the UK and Europe at blockchain company Ripple, told CNBC.
Mark Fairless, CEO of payments infrastructure company ClearBank, said his company had been trying to develop its own stablecoin but was struggling due to a lack of regulatory clarity.
Stablecoins are “part of our medium- to long-term strategy,” Fairless told CNBC. “We’re confident we’re ready for that.” However, he added that ClearBank’s stablecoin will only become a reality once there is clarity from U.K. regulators, including the Bank of England.
However, the country has not yet completely missed the opportunity.
“The UK is still a great place to start a business. We have all the ingredients in place, as we have the ecosystem and talent to create new businesses,” said Lisa Jacobs, CEO of business lending platform Funding Circle. “But that has to continue. We can’t rest on our laurels.”
“I believe the UK will get it right, but if you get it wrong there is a risk that innovation will be moved to other markets,” Keith Grose, head of Coinbase in the UK, told CNBC.
Read more: UK creates problems with crypto banking
