UK Industry Groups Push for Crypto as a ‘Strategic Priority’

• On March 31, several UK trade associations urged Prime Minister Keir Starmer’s office to appoint a crypto envoy and create a strategic action plan for digital assets.
• The coalition claims that crypto and blockchain technology could contribute £57 billion to the UK economy over the next decade.

In a unified push to establish the United Kingdom as a leader in the digital asset sector, a coalition of prominent UK trade groups has called on the government to prioritize blockchain and cryptocurrency technologies. Their goal is to tap into the potential of these innovations to boost the UK economy by an estimated £57 billion over the next decade and contribute £1.39 trillion to global GDP.

The coalition includes influential organizations such as the UK Cryptoasset Business Council, TechUK, Global Digital Finance, The Payments Association, the Digital Currencies Governance Group, and the Crypto Council for Innovation. On March 31, these groups sent a letter to Varun Chandra, the Prime Minister’s special adviser on business and investment, urging the government to adopt a strategic focus on blockchain and digital asset technologies.

Proposed Strategic Actions

Appointment of a Blockchain Envoy: There is a strong call for the creation of a dedicated role, similar to the US’s “crypto czar,” David Sacks. This position would serve to coordinate policy, drive innovation, and represent the UK on the global blockchain stage.

Development of a Government Action Plan: The proposal includes a comprehensive action plan to pinpoint key growth areas, offer public sector support, and help high-potential startups scale within the UK. The coalition also highlights the growing intersection of blockchain, AI, and quantum computing, arguing that tapping into these technologies could bring about major advancements in transparency, productivity, and decentralization across industries.

Establishment of an Industry-Government Forum: A forum is proposed to foster collaboration between industry leaders, government agencies, and regulators. This would ensure that policymaking is well-informed and future-focused. A regulatory framework is also recommended, one that strikes the right balance between encouraging innovation and ensuring consumer protection.

The coalition stresses the urgency of these measures, pointing to the national strategies and advancements made by countries like Singapore, the UAE, and Hong Kong to attract blockchain companies. They warn that without swift action, the UK risks falling behind in the increasingly competitive global digital economy.

This call to action aligns with the UK government’s previous commitments to embracing blockchain technology. For instance, the Financial Conduct Authority has been working on creating a regulatory environment that balances innovation with consumer protection, aiming to provide clarity for businesses, stablecoins, staking, and investors in the crypto market. 

In recent years, the UK has shown interest in cryptocurrency’s potential. In 2022, the government unveiled a cryptoasset strategy aimed at making the UK a hub for cryptocurrency and blockchain technology. Recently, CNF reported that Lisa Gordon, head of Cavendish Investment Bank, has proposed taxing crypto purchases while cutting stamp duty on equities to encourage investment in UK companies.