With HM Treasury and the Financial Conduct Authority (FCA) actively consulting on the future regulatory framework, real progress feels within reach. But as ever, the devil is in the details. Warm words and platitudes alone won’t deliver what is required,
and regulation is only part of the puzzle.
That’s why today, the UK Cryptoasset Business Council has
launched its manifesto for change: a clear, actionable plan that sets out what more the UK Government must do to turn ambition into reality. But why does this matter?
In the 1980s, the ‘Big Bang’ transformed the City of London into one of the world’s preeminent financial centres. Today, a similar opportunity stands before us - if we are bold enough to take it. Blockchain tech, digital assets, and Web3 present the foundations
for the next leap in socioeconomic modernisation, offering a once-in-a-generation opportunity to reinvent the UK’s financial system, catalyse investment, build the foundations for the next iteration of the internet, and secure our place as a leader in the
digital economy. However, this isn't just about tech, it’s about growth, jobs, productivity, investment, public services, and the UK’s ability to lead on a global stage in a rapidly evolving world.
The tokenisation of assets alone could radically alter the architecture of financial markets. A 2025 joint Ripple and Boston Consulting Group
report estimated tokenised assets, including stablecoins, could reach circa £18.9 trillion by 2033. Whether it’s in equities, bonds, or real-world assets, blockchain infrastructure has the power to lower costs, increase transparency and liquidity, and unlock
fractional ownership for a broader range of participants. But to harness these benefits, the UK must act swiftly and strategically - not just as a hub for investment, but as a place where innovation is born, built, and scaled. We must be creators of this future,
not merely consumers of technologies developed elsewhere
Time is not on our side. Jurisdictions like the US, Singapore, and the EU are moving quickly to embed digital assets and blockchain into their economic strategies. The EU’s Markets in Crypto-Assets (MiCA) regulation is already attracting capital and talent,
while the US is leveraging its dollar dominance to accelerate stablecoin adoption and infrastructure investment. Without clear action, the UK risks becoming a second-tier destination - a place where innovation is talked about but not enabled. The result would
be a loss of jobs, talent flight, diminished capital formation, and waning influence in setting global standards. To preserve our competitive edge, we must not only catch up, but leap ahead.
The UK is uniquely placed to lead. We boast deep capital pools, world-class universities, and a history of regulatory excellence. The City of London remains a global gateway for capital and commerce, but the status quo is no longer enough. The next phase
of growth will be driven not by outdated financial engineering and legacy systems, but by digital innovation. Blockchain is no longer a niche, fringe experiment; it's rapidly becoming a core infrastructure layer for everything from finance to healthcare, logistics
to law.
We are also seeing a cultural shift. According to the
FCA, 12% of UK adults now hold cryptoassets. Beyond speculative trading, Web3 is evolving as a new form of digital infrastructure - redefining economic enhancing user control, data sovereignty, and economic participation.
The UKCBC believes that while a forward-thinking, proportionate regulatory framework is essential, it is not a silver bullet. Clarity benefits everyone - firms, consumers, and investors alike - but regulation alone won’t unlock the UK’s full potential in
digital assets and Web3.
Our current approach remains inconsistent, and in some cases, counterproductive. For example, the overly restrictive Financial Promotions regime and retail prohibition of crypto derivatives risk driving UK users toward unregulated offshore platforms. Likewise,
the de-banking of crypto and Web3 firms undermines financial inclusion and innovation, cutting off critical fiat on-ramps. Regulation must be part of a broader strategic approach.
The manifesto details a comprehensive and holistic strategy on how to make this an ambition:
- A cross-governmental blockchain action plan – Led by a dedicated blockchain and crypto czar, this should mirror the government’s approach to AI: cross-departmental coordination, explore public service use cases, recognise the synergistic role between frontier
technologies and better align with global strategic partners, particularly the US.
- A balanced regulatory framework – The UK must regulate services, not technology. Clear, risk-based regulation should distinguish between retail and wholesale markets, ensure fair prudential requirements, and promote innovation while protecting consumers.
- Make the city the global hub for digital asset trading – Tokenisation can supercharge London’s financial markets, but only if we embrace technologies like stablecoins for settlement, recognise cryptoassets as collateral, and support permissionless networks.
- Enable responsible retail participation – Retail users are key to Web3 adoption. Mature assets like BTC and ETH should be excluded from the highest risk categories, and bans on crypto derivatives should be lifted.
- Support stablecoin innovation – As the US pivots away from CBDCs toward stablecoins, the UK must ensure that its own frameworks are flexible and proportionate, allowing access to central bank reserves and recognising the full utility of GBP - and foreign-denominated
stablecoins.
- Recognise the role of public and permissionless blockchains – These networks drive decentralised finance (DeFi), lower intermediation costs, and improve transparency. The UK should embrace decentralised models and self-custody, rather than forcing legacy
structures onto new paradigms.
- Stop the de-banking of the sector – 8 in 10 UK banks restrict transfers to crypto platforms. Moreover, a recent survey we conducted found that digital asset, Web3, and blockchain firms struggle to open or maintain UK bank accounts. This is incompatible
with a modern financial ecosystem. Firms, particularly those regulated, must have fair access to banking, and banks should be transparent about their policies.
Key findings include:
- 50% of firms had either been rejected from opening a bank account or had an account closed by one of the banks they were asked about.
- 14% managed to successfully apply for a bank account without it being closed at a later date.
- 81% of firms agreed that difficulties accessing banking services are a significant barrier to their company succeeding in the UK, and 70% found that this made it more likely that they would leave the UK.
- 76% found that difficulties accessing high street banks have meant their company has instead used a bank they view as riskier.
- Build a fair and modern tax framework – The tax system must be simplified and aligned with how digital assets function. From DeFi staking rules to exemptions for stablecoins, UK tax policy must evolve alongside regulation to maintain competitiveness.
If we get this right, the rewards are substantial. Blockchain isn’t just a financial tool - it’s a foundational infrastructure for a new kind of economy: more open, more efficient, and more inclusive. With smart policy, strategic direction and effective
communications, the UK can not only lead the charge but ensure that the benefits - jobs, investment, digital public goods - are felt across the entire country.
What’s needed now is political will - a clear signal that blockchain is a strategic priority for the UK’s digital and economic future.
This is ‘our’ Big Bang moment. The question is no longer if the world will embrace these technologies - it’s where. Let’s make sure the answer is the UK.