Meanwhile, the UK continues to crow about becoming a global crypto hub. It’s starting to sound like just talk. Politicians have their heads so deep in their own congratulatory back-pats. At the same time, Southeast Asia’s dynamic creative ecosystems—from artists to developers to entrepreneurs—stand hoping to reap the bounties of blockchain technology. Or are we so obsessed with competing against the EU and the US that we’re missing the forest for the trees.

Neglecting a World of Opportunity?

It’s not enough to avoid it simply being London’s race to become the next Silicon Valley. It’s about the unrealized promise of places such as Southeast Asia. Imagine a young artist in Jakarta, struggling to make a living, finally able to directly monetize their digital art through NFTs, bypassing exploitative galleries and middlemen. Or another example, a Filipino developer creating decentralized apps that solve needs in their local community, supported by crypto capital.

The UK’s slow regulatory response isn’t only a missed opportunity to stifle domestic innovation. It’s about systematically, purposely crowding out opportunity for the most vulnerable among us. It effectively says to them, “We’re too busy fighting with each other over market share to work with you to improve your future." Think about that. The EU, with its MiCA framework, is already setting the stage. The US, if it has a more crypto-friendly administration, is set to jump way ahead. Where does that leave the UK? Perhaps most importantly, where does it leave Southeast Asia?

Echoes of Colonialism in Crypto Policy?

Sorry, this may hurt now, but is the UK’s ‘subtle colonialism’ crypto regulation really that bad? Are we, maybe without even realizing it, placing Western interests and perspectives above the unique needs and opportunities of these emerging markets? It's easy to dismiss this as hyperbole, but consider this: how much input from Southeast Asian stakeholders is actually informing UK crypto policy? How much consideration do we pay to blockchain’s capacity to address urgent challenges that these communities are experiencing on the ground? When done right, it can greatly improve financial inclusion and protect land rights. The answer is likely: not enough.

The government has only recently published draft legislation for the digital assets industry – a major lag when looking at other areas of the world. It's simply not good enough.

  • Delayed regulation means delayed opportunity.
  • Delayed opportunity means stifled innovation.
  • Stifled innovation means a missed chance to empower communities that desperately need it.

Beyond Stablecoins: Human Potential Lost

Executives, like ClearBank’s CEO, are concerned that too much regulation will stifle stablecoin innovation. Standard Chartered expects the stablecoin market to grow rapidly only if the US approves legislation. These are valid concerns. Let's zoom out for a second. This isn't just about stablecoins. It’s about the human capital that’s being lost.

Think about the stories we aren't hearing. The Southeast Asian entrepreneurs who are abandoning their crypto startups due to regulatory confusion. These are the artists that can no longer take advantage of the old, exploitative systems. It’s the creative developers whose ideas continue to die on the vine. These are the true victims of the UK’s failure to act.

Coinbase's UK head warns of innovation flight. He's right. It isn’t only the story of firms relocating their corporate headquarters. Lives are being ruined, and potential is going to waste. Otherwise, we lose the opportunity to create a global economy that works for everyone. We need to ask ourselves: are we content to watch from the sidelines as Southeast Asia's crypto potential goes untapped? Or are we willing to take bold action, embrace collaboration, and help build a future where everyone has a seat at the table? The choice, as always, is ours. It’s one thing to wax poetic about becoming a global crypto hub, but it’s entirely another to actually do it. A real international hub, that is, rather than just a London-focused initiative.