See More

UK Risks Falling Behind the Curve in Terms of Crypto Adoption, Claims Ex-Government Minister

2 mins
Updated by Geraint Price
Join our Trading Community on Telegram

In Brief

  • A former UK government official has warned that the country’s crypto industry could play second fiddle to other jurisdictions.
  • He warns that the UK can still take steps to reverse the negative trend.
  • Opinions are split amongst regulatory bodies in the country with the Bank of England, Treasury, and Financial Conduct Authority harboring different sentiments about digital assets.
  • promo

The United Kingdom is lagging in terms of crypto development and has “missed a trick,” according to a former government finance minister.

Philip Hammond, a former Chancellor of the Exchequer, says the U.K. is lagging behind other countries. “It isn’t too late for us to catch up and recover, but we are getting very close to the point where it will be too late,” he said.

Hammond, now a senior adviser to Copper.co, a firm providing crypto custodial services, noted that the U.K. has always been historically agile in adopting new financial technology ahead of the European Union and other countries. 

However, in terms of digital asset adoption, Hammond feels that the country is now playing second fiddle to the EU.

He backed up his stance with the argument that “you’ll have to go back a very long way to find a time when the EU was ahead of the U.K. in regulating emerging financial technology.”

Lack of regulation problematic for crypto industry 

Hammond noted that the main challenge for the cryptocurrency industry in the U.K. is the absence of regulation. He referred to the sector as being the Wild West because investors and firms do not really know where they stand.

According to Hammond, investors in the space are pining for a wholesome regulatory framework that “weeds out bad practices, protects consumers and creates a proper set of rules” for the industry to thrive. 

He goes on to list countries like Switzerland, and Germany as jurisdictions that are properly poised to be the new hub for the future of digital assets thanks to their evolving regulatory environment.

U.K.’s wavering stance

Last year, the Financial Conduct Authority (FCA) went on a crackdown on crypto firms with Binance noticeably affected by the purge. 

And early this year, the country’s Advertising Standards Agency (ASA) banned the crypto ads of over 10 firms for failing to meet acceptable standards.

However, last month’s Queen’s Speech to Parliament offered a ray of hope as it hinted at a holistic regulation for the industry. The U.K. digital minister also stoked the embers of hope for enthusiasts after stating that the government intends to make the country a crypto hub.

Top crypto platforms in the US | March 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Wahid.jpg
Wahid Pessarlay
Wahid loves to write, especially about Crypto and Blockchain. He started his blogging journey in 2017 and turned to crypto in 2019. Wahid is interested in tech, chess and DeFi. He aims to promote decentralization to everyone on the planet.
READ FULL BIO
Sponsored
Sponsored