TLDR
- Former Chancellor George Osborne warned that the UK is being left behind in the global crypto race.
- Osborne said the UK’s delayed response to crypto mirrors its late adoption of past financial reforms.
- Despite earlier consultations, the UK has not yet implemented a legal framework for crypto and stablecoins.
- Other regions like the US, Hong Kong, and Singapore have introduced clear crypto regulations and launched ETFs.
- UK regulators plan to ban the use of borrowed funds for crypto investments to reduce financial risks.
According to former Chancellor George Osborne, the UK may miss the global crypto shift due to its delayed actions. While other financial hubs advance digital asset frameworks, the UK lags in policy and regulation.
Former Chancellor Warns of UK’s Crypto Inertia
George Osborne expressed concern that the UK is falling behind major economies in crypto adoption and regulatory development. He emphasized that the UK once led financial transformation but now hesitates in a fast-moving digital economy. His remarks followed criticism of the current administration’s inaction in providing clear crypto rules.
Countries like the US, Hong Kong, and Singapore have introduced regulatory models that promote innovation while maintaining oversight. Osborne said the UK’s delay resembles past missed opportunities, referencing the late embrace of reforms in the 1980s. He added that blaming regulators for inaction reflects weak leadership rather than structural barriers.
The UK has not yet launched a full regulatory framework for crypto or stablecoins. In contrast, the US introduced spot-Bitcoin ETFs in early 2024, gaining momentum across exchanges. As a result, the UK faces pressure from financial leaders to act before losing its competitive edge.
UK Lags Behind in Crypto Rules and Market Access
Despite publishing a consultation paper in February 2023, the UK still has not implemented any binding crypto legislation. Meanwhile, the EU finalized its MiCA framework, and the US launched multiple crypto-based financial instruments. The UK only began consulting on allowing crypto ETNs and derivatives for retail in mid-2025.
The UK plans to lift its retail ban on cryptocurrency derivatives and ETNs by October 2025, later than most peers. Although the change could expand market access, critics say it reflects how far behind the UK has fallen. Investors and crypto firms have urged faster steps to match international standards.
Adding to the concern, UK regulators announced a potential ban on using borrowed funds to invest in cryptocurrencies. This would prohibit retail traders from using credit cards or loans for digital asset purchases. While the move targets risk management, experts fear it could push investors into unregulated lending channels.
Institutional Stance Sparks Backlash From Industry
Bank of England Governor Andrew Bailey reiterated skepticism toward stablecoins, citing risks to financial stability and deposit protections. He argued that stablecoins lack the reliability of traditional bank money and should not replace commercial deposits. This conservative stance places the UK further behind global peers in stablecoin adoption.
Former Chancellor Osborne, now with Coinbase’s advisory board, challenged the central bank’s approach and called for bold policy changes. Coinbase CEO Brian Armstrong also criticized UK regulators after networks blocked a recent crypto advertisement. He warned that outdated views are limiting the UK’s potential in the digital economy.
The UK government has expressed interest in establishing a tech partnership with the US as part of trade talks. Treasury officials have pledged to introduce robust crypto rules to support fintech growth and protect investors.
