Opinion by: Daniel Taylor, head of policy at Zumo
We’re approaching five years since we first heard about the “global crypto hub UK,” and the United Kingdom has drawn its fair share of flak regarding its crypto strategy.
Amid a perpetually delayed regulatory framework, vanishing company approval rates and increasingly loud public criticism of overzealous and nannying “positive frictions,” UK consumers have been left out in the cold both in product access and product choice when compared to international counterparts.
Meanwhile, those in positions of influence have repeatedly and complacently dismissed the crypto trend, all while failing to implement any protective framework beyond risk warnings.
With the word “crypto” never to be heard in the corridors of power, consensus view has hardened: Britain is unimaginative, sluggish and missing the crypto opportunity.
Forced change from the ground up
Let’s get some perspective here for a moment. The UK is still Western Europe’s largest crypto economy. Coinbase counts it as its second biggest market after the United States. UK residents are active and engaged across the DeFi landscape. Its citizens want and use crypto, regardless of what the country’s leadership says or does.
That, however slowly, is leading to change.
What follows is the optimist’s take on why the UK crypto tanker is slowly turning.
The UK’s quiet crypto pivot
As popular and lively as the UK-bashing has been, the black-white representation conceals an under-represented picture. Beneath the surface, the UK is undergoing a quiet, still largely unrecognized pivot, one that could redefine its position as a global center for crypto business.
First there are the market developments. Retail investors can finally invest in crypto exchange traded products again. The US and the UK are collaborating directly on crypto development. The UK financial regulator, so often the one to drive companies out of the UK market, has begun to speed up applications. And, finally, sterling-based stablecoins are beginning to emerge.
When you put these together with the regulatory and legal developments, you can see the potential for a transformed UK crypto operating environment within a 12-24 month window. The sector will have a full suite of finalized crypto activity-based rules within 2026, and a live regulatory framework in 2027. Legal recognition of digital assets as property has received its final Royal Assent. And that’s all great news for removing the crutches that have been holding the UK crypto market back.
What it means for crypto business
As a result, any global business can look into 2026 and have a reasonable chance of knowing where it stands in developing a UK crypto offer.
The incoming UK crypto framework means that if you want to conduct activities like custodying crypto, operating a trading platform, issuing a stablecoin or offering staking services, you’ll soon have clear rules in place to do it.
Related: The token is dead, long live the token
And in some ways, what the UK is proposing goes beyond what has been achieved anywhere else.
Unsecured creditor status was a massive factor in the exchange failures of 2022. UK crypto investors, where they entrust their assets to third-party platforms, will have the assurance that their investments are held in legal trust, with recognition of their investor property rights.
For international exchange businesses, an innovative branch-subsidiary proposal would give multinational businesses access to the UK retail market while retaining access to global order books and splitting obligations between home-host regulators.
In crypto adjacent areas, future systemic stablecoins may enjoy a central bank backstop as well as access to direct central bank accounts. And current tokenized fund proposals are looking forward to native issuance models and stablecoin settlement possibilities.
In this way, the UK is aiming to leverage what has made it stand out: a legal and financial system that innovates and enjoys a leading reputation throughout the world.
An unashamedly pro-crypto UK strategy
Of course, there is still much more to be done. Beyond the mainstreaming a future UK crypto framework will bring, we must go further in harnessing the future potential that decentralized, crypto-based models can bring.
That means utilizing the full power of tokens to allow for entirely new models of capital raising.
It means empowering self-custody models, and not just neo-intermediaries.
And it means using cryptography to advance individual rights to privacy, to sovereignty and to global, seamless value transfer.
In the meantime, the UK is firmly open for crypto business.
Opinion by: Daniel Taylor, head of policy at Zumo.
This opinion article presents the contributor’s expert view and it may not reflect the views of Cointelegraph.com. This content has undergone editorial review to ensure clarity and relevance, Cointelegraph remains committed to transparent reporting and upholding the highest standards of journalism. Readers are encouraged to conduct their own research before taking any actions related to the company.
This opinion article presents the contributor’s expert view and it may not reflect the views of Cointelegraph.com. This content has undergone editorial review to ensure clarity and relevance, Cointelegraph remains committed to transparent reporting and upholding the highest standards of journalism. Readers are encouraged to conduct their own research before taking any actions related to the company.
