Key Points
- UK trade associations urge the government to appoint a dedicated crypto envoy to foster growth in the sector.
- The UK’s stance on digital assets contrasts with other countries, potentially leaving it behind in the global crypto race.
The UK government has been urged to act on cryptocurrency by trade bodies who are calling for a dedicated envoy to foster growth in the sector. This comes as the global race to embrace crypto intensifies, with the UK at risk of falling behind without clear government action.
The crypto landscape in the U.S. under the Trump administration has sparked global debates on regulatory strategies. In response to this, British trade associations have called on Prime Minister Keir Starmer’s office to appoint a dedicated crypto envoy.
UK’s Focus Shifts to Digital Assets and Blockchain
On the 31st of March, six UK digital economy trade bodies addressed Varun Chandra, Prime Minister Starmer’s business and investment adviser, in a letter. They emphasized the need for a strategic focus on digital assets and blockchain to strengthen the UK’s position.
The bodies referred to the U.S. policy shift and its crypto czar, highlighting the importance of fostering investment and innovation. They also stressed the need to create jobs and boost confidence in the UK’s crypto industry.
The coalition projected that the UK economy could see a boost of £57 billion ($73.6 billion) over the next decade from the crypto sector. They also estimated that by 2030, the industry’s influence could contribute an estimated £1.39 trillion ($1.8 trillion) to the global GDP.
The Urgency of the UK’s Action on Crypto
Tom Griffiths, Co-Founder and Managing Partner of BitCompli, a crypto compliance advisory firm, responded to the letter on LinkedIn. He noted that the UK is losing pace with Dubai, Singapore, and other EU jurisdictions. He emphasized the need for the Financial Conduct Authority to act or the UK will miss out on the huge opportunity presented by digital assets.
Despite the growing recognition of digital assets, the UK government has yet to take decisive action in designating cryptocurrency as a strategic sector. Industry leaders stress the need for more substantial steps, such as the proposal for a central bank digital currency and efforts to integrate blockchain into financial services.
The UK’s stance contrasts with the U.S., which has stepped up with their Strategic Bitcoin Reserve plan, influenced by former President Trump. However, countries like Russia, South Korea, and Japan are expressing caution. Russia has suggested banning cryptocurrency settlements, while South Korea and Japan remain doubtful about adding Bitcoin to their foreign exchange reserves.
Switzerland and the European Central Bank have also maintained a cautious approach toward Bitcoin’s role in national reserves.
