Recently, several trade associations in the UK have appealed to Prime Minister Keir Starmer’s office, advocating for the appointment of a dedicated special envoy for cryptocurrency. In a letter dated March 31, this coalition of six digital economy trade bodies emphasized the necessity for a focused action plan regarding digital assets and blockchain technology.
The coalition includes reputable organizations such as the UK Cryptoasset Business Council, Global Digital Finance, The Payments Association, Digital Currencies Governance Group, the Crypto Council for Innovation, and techUK. They expressed a collective need for a “greater strategic focus and alignment to deliver investment, growth, and jobs” for the crypto industry. This call to action comes in light of a significant policy shift regarding crypto in the United States under former President Donald Trump, who notably created a role for a dedicated “crypto czar” to oversee digital asset initiatives.
The letter highlighted the opportunity to align the UK’s technological cooperation goals with the US, mirroring their efforts to cultivate leadership in blockchain and other emerging financial technologies. The coalition recommended that the UK appoint a blockchain special envoy, drawing inspiration from the US model, to help coordinate policy and enhance innovation within the sector.
Additionally, the trade bodies are advocating for the formulation of a comprehensive government action plan for blockchain and crypto technologies. This plan should include a concierge service aimed at attracting high-potential firms to the UK market.
Moreover, they emphasized the importance of recognizing the intersections between blockchain technology, quantum computing, and artificial intelligence, especially regarding their potential applications in government services. To foster informed decision-making and cross-sector collaboration, the groups also proposed the establishment of a high-level forum that includes industry stakeholders, government representatives, and regulators.
The UK crypto and tech associations lobbying the government for a policy shift. Source: LinkedIn
The coalition firmly believes that the UK is well-positioned to thrive within the digital asset and blockchain innovation landscape, citing access to a wealth of talent, capital, top-tier academic institutions, and sophisticated regulatory frameworks. They argue that the incorporation of crypto and blockchain technology could potentially boost the UK economy by an estimated £57 billion ($73.6 billion) over the next decade and significantly contribute to a projected global GDP increase of £1.39 trillion ($1.8 trillion) by 2030.
In response to the coalition’s letter, Tom Griffiths, co-founder and managing partner of the crypto compliance advisory firm BitCompli, remarked on LinkedIn that although the Financial Conduct Authority (FCA) possesses considerable talent and foresight, the UK is at risk of falling behind nations like Dubai and Singapore. He stressed that prompt action by the FCA is crucial, as the country stands to lose valuable opportunities within the burgeoning sector of digital assets and the manifold benefits it entails.
In summary, the push from UK trade bodies underscores an urgent call for strategic engagement with the crypto industry. As the nation navigates its position within this rapidly evolving space, the outcomes of these discussions and the potential policy changes could set the tone for the UK’s future in the digital economy.
