Despite the promises of previous principal ministers, to convert the UK into a crypto hub, the UK is still cautious about regulating the crypto industry.
In 2022, the then Prime Minister Rishi Sunak promised to amend the laws controlling the crypto industry in Britain, making them friendly for blockchain businesses. Rhetoric may have given relief to entrepreneurs, but industry officials and supervisors say progress is slow and it is still not the rules that want to expand.
Under the PM Kir Stmper, the labor government has reduced this agenda to pursue this agenda; Crypto has taken the back seat for other concerns. Tom Spieller, a partner of Crypto-Centenary Rosynbal Law, told Coinlagraph that the labor “appears more alert and is not a clear attention that sits within the major missions of the government.”
Britain has not come to a previous promise to convert the crypto hub, but indications suggest that the tide is changing.
Things can see for UK Crypto industry
In the United States, Crypto is an actively chasing biased issue, but the main political parties in the UK are almost equally unpublished.
In April 2022, Orthodox government led by Sunak Announced Plan to make the UK a crypto hub. The proposed measures included recognizing stablecoins as a form of payment, introducing the “infrastructure of the financial market Sandbox” and establishing the “Cryptosate Angiment Group” to work with the industry.
The reform announced that it would accept the contribution of the Bitcoin (BTC) campaign earlier this year, and labor, while emphasizing the concern on user conservation, is not externally hostile to the industry.
James Harris, CEO of the Group of Fintech firm Tesurect, told the Cointeletgraph that “Tone has been one of most caution and consumer protection, gradually giving way to practicality. It has not been reversed by the new government, which suggests some bilateral alignment.”
“Overall, Crypto in the UK still seems opportunistic rather than ideological.”
Harris said there are encouraging signs. He said that April 2025 HM Treasury Consultation and Financial Conduct Authority Paper CP25/14 “suggest a change towards the treatment of crypto as a valid asset class under the Financial Services and Market Act (FSMA).”
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Treasury consultation, which Closed In May, the proposed change in FSMA that will allow stabechoin release, stacking and other crypto activities. CP25/14 of Financial Conduct Authority proposed, but did not make a set of rules for stabechoin and crypto detention.
Property (digital assets, etc.) bills, which saw recent debate in Parliament, may soon recognize digital assets as property. If passed, the law will represent “a major success”.
The UK Crypto industry wants regulator to be more decisive
Despite these positive developments for the industry, some people are concerned about the pace of change of government’s opinion on cryptocurrency.
Spiler said, “There is concern about the pace of progress, especially when compared to the development of courts such as the United States. It is slow to the slow talent and slow risk to encourage capital.
Britain is still “behind his global peers,” said Harris. He insisted that the European Union has its markets in the Crypto-assets (MICA) regulatory structure, the UAE is roughly accepting Crypto, and the US is “making meaningful legislative progress that provides more clarity than ever.”
Industry groups are increasing their campaigns to try to change the legal scenario in the UK. Cryptuk, a business organization for the Crypto industry, has been contacted with MPs, colleagues, regulators, media and other stakeholders to change the law.
In particular, the group has called the regulators to identify stablecoins, which it looks as fair banking policies, “so more digital asset companies can use other businesses in the UK,” and can change the advertising rules.
According to Spiler, there is also a place for the UK to improve how it manages the crypto property that keeps it with criminal seizures. “These assets are not always optimistic managed. There is an opportunity for the better leadership of these holdings to benefit the public purse.”
The head of the home office and the country’s Treasury, REWS, is currently working to sell some of these properties of $ 7 billion to complement the government budget. Harris believes that it still indicates an incomplete understanding and “short -term approach of Crypto”.
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The Crypto sector has largely been able to align with the government’s money-laundering requirements and has established the travel rule. Spiler said, “Strong equipment is available to support compliance, and actors responsible in space are using them.”
Nevertheless, a major obstacle is that many crypto projects are not easily classified under the current law that controls traditional financial instruments. Industry supervisors say that more fine and fit-for-protest rules are required.
Rules change industry landscape
In April, when the government Announced Its draft law for the Crypto industry, it highlighted consumer protection and said that the new law would be below the bad actors supporting legitimate innovation.
The presence of specific and strong regulatory structures like Micah in Europe is expected to bring a consolidation to the local crypto industry. Illegit or illegal actor, as well as small companies that cannot bill for compliance, are expected to get out of the market. In turn, large and obedient companies will take their place and compete with each other for market share.
This trend is also expected in the US, where the Congress is aiming to pass its clarification act, which will provide a bespoc regulatory rule for the crypto industry. President Donald Trump had already signed the Talent Act, which was controlling Stabecrims in the law last week.
According to the May 2025 paper of three partners in the International Law firm White and Case, players like Coinbase, Crackon and Circle are expected to execute ad-on acquisitions in the near period.
This is for this reason that the same revival of the blockchain trade scenario can prove to be correct for the UK Crypto industry, ie if the government can move forward with changes that industries want.
At this point, Pro-Crypto supervisors say the UK is still moving very slowly. Harris said, “If the UK wants to retrieve its ‘Crypto Hub’ ambitions, there is still a lot.”
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