Leading trade organizations in the UK are calling on the government to include blockchain technology and cryptocurrencies as a strategic priority, emphasizing the sector’s potential for economic growth and innovation.  Fears that the UK risks losing out to other financial hubs in developing an innovative regulatory environment for digital assets are the motivation for the demand.

Industry Leaders Call for Clear Regulations

In a joint effort, six digital economy trade bodies in the UK, on 31 March 2025, have written a letter to Varun Chandra, Prime Minister Keir Starmer’s adviser on business and investment, urging the government to enact legislation that is both transparent and supportive of the cryptocurrency sector. 

The Trade bodies included: the UK Cryptoasset Business Council, Global Digital Finance, The Payments Association, Digital Currencies Governance Group, the Crypto Council for Innovation, and techUK. They argued that in an increasingly digital economy, the UK’s status as a global financial leader depends on proactive government engagement. 

The request highlights rising anxieties in the sector and follows as the world increasingly competes for dominance in blockchain technology.  As per business lobbies, the UK’s healthy finance system has not done the crypto and blockchain sectors any good due to ambiguous regulations and the absence of government focus. 

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.” 

According to the alliance, the UK economy could improve by 57 billion British pounds ($73.6 billion) over the next ten years, and by 2030, the sector could raise the global gross domestic product by 1.39 trillion pounds ($1.8 trillion).

To align policies, encourage innovation, and position the UK to be competitive in global markets, the group recommended that the UK appoint a blockchain special envoy, similar to that of the US. A tailored government action plan for blockchain and cryptocurrency, such as a concierge service to attract high-potential firms, was also called for by the trade associations. Additionally, they stated that the government ought to take note of and capitalize on the similarities among blockchain, quantum computing, and artificial intelligence technologies, including their uses for government services. 

They stated that “With deep pools of talent, access to capital, world-class academic institutions, and sophisticated regulators, the UK provides an environment where digital assets and blockchain innovation can thrive,” 

In response to the letter on LinkedIn, Tom Griffiths, the co-founder and managing partner of crypto compliance advisory firm BitCompli, said, “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. 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.” 

While the UK government has acknowledged the growing importance of digital assets, it has yet to make a decisive move in making cryptocurrency a strategic sector.  While proposals for a central bank digital currency and other previous initiatives to integrate blockchain into financial services demonstrate interest in the area, sector leaders argue that more concrete effort needs to be made.

Pressure on UK authorities to adopt a more progressive stance on cryptocurrency is expected to grow as the global regulatory landscape evolves.  It is uncertain whether the administration will act on these calls.