Former UK Chancellor George Osborne has issued a blunt warning over Britain’s approach to crypto, arguing that regulatory caution is costing the country its place in the next wave of financial innovation.
In an op-ed published by the Financial Times, Osborne accused Chancellor Rachel Reeves and Bank of England Governor Andrew Bailey of falling behind global peers.
“On crypto and stablecoins, as on too many other things, the hard truth is this: We’re being completely left behind,” Osborne wrote in his op-ed. “It’s time to catch up.”
He likened crypto’s rise to the Big Bang reforms of the 1980s that cemented London’s financial dominance. Osborne also singled out the Bank of England's stablecoin policy, calling it a roadblock to innovation.
Bailey, meanwhile, had earlier warned that stablecoins should not replace traditional money, and has supported rules that critics say would make sterling-pegged coins commercially unworkable.
Osborne’s comments follow renewed tensions between UK regulators and the industry. In the past week, UK broadcasters pulled a Coinbase ad that showed the financial system collapsing like a crumbling ceiling. Coinbase CEO Brian Armstrong responded Sunday.
"Our ad which got banned in teh UK by the TV networks has sparked quite a reaction," he wrote on X. "If you can't say it, then there must be a kernel of truth in it."
The UK has stricter rules than many jurisdictions. The Financial Conduct Authority, or FCA's, 2023 regime includes 24-hour cooling-off periods for new investors, bans referral bonuses, and restricts crypto advertising, classifying it as high-risk.
CryptoUK, a digital assets trade group, echoed Osborne's concerns.
There is a call for “the recognition of stablecoins in UK law and fairer banking policies, so more digital asset companies can use the same financial services other businesses in the UK can use,” Su Carpenter, director of operations at CryptoUK, told Decrypt.
She added that “there is a real lack of recognition of how the tax framework can and will apply,” which “has inhibited economic growth in the crypto sector.”
Carpenter said CryptoUK has been pressing for broader access to crypto-linked investment products and continues to “inform, educate and address policymakers” to shift the debate.
While UK regulators stress stability and consumer protection, industry voices warn the country risks falling behind.
FCA data from 2024 shows 12% of UK adults now hold crypto, up from 10% in 2022. Meanwhile, Singapore, Hong Kong, and Abu Dhabi have moved ahead.
London-headquartered Alvara Protocol, which builds tokenized asset baskets on Ethereum and Avalanche, voiced similar frustration with the UK’s regulatory gridlock.
“The UK talks a big game about being a global crypto hub, but it’s still miles behind the EU’s MiCA framework and even the US’s chaotic, but active, approach,” Callum Mitchell-Clark, co-founder of Alvara, told Decrypt. “Everything feels stuck in consultation mode: too slow, too cautious, and totally out of sync with how fast the industry moves.”
Mitchell-Clark said the govermment’s messaging hasn’t matched its policy actions.
“To me, the UK’s current stance sends a clear message: ‘we support innovation in theory” he said. “If the UK keeps dragging its feet, it risks becoming irrelevant while builders and capital head to places like the EU, U.S., or even Dubai.”
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