CryptoUK, the self-regulatory trade body for the cryptoasset sector in the UK, has written to the new Chancellor of the Exchequer, calling on the new government to prioritise the crypto industry as part of its ambitions to become a global fintech hub.
To achieve this, the letter sets out how the government must do more to support crypto firms in accessing banking services. A recent survey of firms across the sector by CryptoUK found that 73% have opened a bank account in another country due to complications with banking in the UK. Despite existing Payment Services Regulations requiring providers to give a reason for declining services to the UK, half of those companies who had been rejected by a UK bank were not given a reason.
To support the sector’s growth, the UK needs a proportionate, well-designed regulatory regime for cryptoassets in the UK. It is vital that the process, which has begun with a series of consultations from HM Treasury and the Financial Conduct Authority (FCA) this year, is concluded with the introduction of new, proportionate rules as soon as possible. This will provide regulatory certainty for the sector and attract leading crypto companies to base themselves in the UK, at a time when the Government seeks to compete on the global stage post-Brexit.
To support crypto innovation in the UK, the letter calls on government to make crypto a central element of its Fintech Sector Strategy, originally published last year.
Iqbal V. Gandham, Chair of CryptoUK, said: “I would like to congratulate Sajid Javid on his appointment as Chancellor. We have been working with Government, Treasury and the FCA since we launched in 2018 to put forward plans for appropriate regulation and we look forward to continuing this work with the Chancellor.
“The UK has the potential to become the home of crypto innovation and indeed many of CryptoUK’s members want to grow their operations here. However, the sector needs support from Government, regulators and the banking industry if we are to thrive in the UK. This is why we are calling on the Chancellor to back the sector, introduce appropriate regulation and give responsible companies greater opportunity to access banking services.”