A new report from a cross-party group of UK lawmakers, led by former Chancellor George Osborne, has issued a stark warning: Britain is lagging in its approach to regulating digital assets. While countries such as the U.S., Singapore, and the European Union move forward with comprehensive crypto frameworks, the UK risks missing its chance to become a global hub for blockchain innovation.
The group argues that the country’s current approach—focused primarily on anti-money laundering (AML) registration of crypto firms—is too narrow. Instead, they call for clearer, broader rules governing everything from digital asset trading and custody to token issuance and consumer protection.
Why does it matter?
The UK government has often stated its ambition to turn London into a leading center for digital assets and fintech. However, investors and crypto businesses say uncertainty over regulation discourages innovation, drives talent abroad, and weakens Britain’s competitive edge.
The lawmakers’ report highlights several key points:
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Comprehensive regulation is overdue – relying only on AML rules leaves critical gaps.
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Registration for crypto firms must be streamlined – to attract reputable businesses rather than push them offshore.
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Global competitiveness is at stake – jurisdictions with clear, predictable rules are becoming magnets for capital.
What’s next for UK crypto policy?
The Financial Conduct Authority (FCA) has tightened oversight of crypto advertising and registration, but these moves alone may not be enough. A full legislative framework—similar to the EU’s Markets in Crypto-Assets Regulation (MiCA)—could provide the clarity companies are seeking.
George Osborne and his cross-party allies believe that if the UK fails to act soon, it will lose ground to regions embracing digital finance more decisively. “This is not about giving crypto a free pass,” Osborne stressed, “but about providing certainty so that innovation happens here rather than somewhere else.”
With the digital asset market expected to grow rapidly in the next decade, Britain faces a simple choice: lead in shaping responsible crypto innovation or risk being left behind.
