FinTech executives are warning that the U.K. risks falling behind in the burgeoning crypto industry due to its cautious regulatory approach. While the U.S. embraces a more pro-crypto stance under President Donald Trump, and other countries actively pursue industry-friendly reforms, the U.K. is perceived to be prioritizing safety over innovation, potentially driving businesses away.
The U.K. has an incredibly vibrant FinTech sector, with companies like Revolut and Monzo upending banking as we know it. The government’s recent draft proposals for regulating crypto firms have raised fears of stifling growth. This is a marked change from the U.K.’s approach just ten years ago.
"The forefront in terms of promoting competitiveness and innovation" - Jaidev Janardana, CEO of British digital bank Zopa
Janardana points out that the U.K. now seems more interested in making sure safety and soundness comes first, which can be a brake on growth.
The EU’s MiCA regulations went into effect at the end of last year, increasing the MiCA heat on the U.K. At the same time, Singapore, Hong Kong and UAE aren’t sitting idle, rolling out their own proactive reforms. Cassie Craddock, the U.K. and Europe managing director at blockchain company Ripple, highlighted the increasing international competition.
"Other jurisdictions have started to seize the opportunity" - Cassie Craddock
Craddock cited the overall momentum building stateside.
"The U.S. is driving global tailwinds for the industry" - Craddock
The U.S. is facing some big headwinds in the crypto world. As Craddock readily agrees, on the question of speed of innovation, it is actually lagging behind the U.K. The U.K. will be left behind in the race to retain and attract companies to its shores if it can’t sort out the regulatory and funding shambles within weeks.
