Cryptoassets
Blockchain and Digital Assets

Matt Green
June 2025

We now find ourselves at a critical crossroads in the evolution of financial technology. While the UK once made bold proclamations about becoming a global crypto asset hub, real progress has stalled, and the lack of regulatory clarity is beginning to weigh on investment, innovation, and job creation. In an era where blockchain, artificial intelligence, and quantum computing are converging to reshape global economies, the UK must act decisively or risk falling behind forward-thinking jurisdictions such as the US, Singapore, and the UAE.

While recent developments from the Financial Conduct Authority (FCA) – including the publication of a crypto roadmap and the UK Treasury preparing draft legislation to provide clarity on qualifying crypto assets, including stablecoins, which will fall under the remit of the Financial Services and Markets Act 2000 –  indicate progress, the pace of change remains too slow.

The UK has a golden opportunity to define a forward-looking, globally competitive framework for digital assets, but this demands bold leadership, joined-up policymaking, and a clear national strategy that puts emerging technologies at the centre of economic growth. In a joint letter to government, Matt Green, Head of Blockchain and Digital Assets and Technology Disputes at Lawrence Stephens, together with leading industry bodies, outlined a series of proposals to help the UK realise this potential. The article below explores their key recommendations in more detail.

Laying the groundwork for growth

According to the FCA, around 12% of UK adults, approximately seven million people, now own digital assets. Despite this, only 8% of global venture capital funding in the space went to UK-based firms in the past year. The US, by comparison, attracted a staggering 76%. If the UK is serious about becoming a leading force in the digital economy, it must close this investment gap with urgency.

At present, a fragmented approach to digital asset regulation is inhibiting progress. A new wave of global strategies led by national governments eager to capture the economic benefits of blockchain and Web3 is leaving the UK at risk of playing catch-up. From Dubai to Washington, governments are launching clear action plans, appointing envoys, and rolling out incentive programs to attract high-potential digital firms.

A clear path to digital leadership

That’s why a coalition of leading trade bodies, including the UK Cryptoasset Business Council, Global Digital Finance, The Payments Association, techUK and Lawrence Stephens has come together to call on the Government to implement a clear digital asset strategy. Representing both pioneering start-ups and established multinational firms, we believe the UK can and should be at the forefront of responsible innovation.

There are four key steps the UK can take to realise this ambition:

1. Appoint a blockchain special envoy

Just as the US government has appointed a high-profile blockchain envoy to spearhead policy alignment and investment attraction, so too must the UK. A dedicated envoy would serve as a strategic bridge between government, regulators, and industry, driving consistency, championing innovation, and positioning the UK as a premier destination for blockchain-related investment. The envoy would also play a crucial global role, representing the UK on the international stage and securing collaboration opportunities with leading digital nations.

2. Launch a government-led Digital Asset Action Plan

Like the coordinated approach seen in artificial intelligence, the UK should implement a comprehensive strategy for digital assets and blockchain technology. This could include a white-glove concierge service to support scale-ups, integration of blockchain into public services, and the development of a globally competitive tax and investment landscape. Targeted incentives would enable the UK to attract and retain the world’s most promising digital firms, ensuring job creation and long-term economic benefit.

3. Recognise the convergence of emerging technologies

Emerging technologies rarely operate in silos. Blockchain, quantum computing, and AI are increasingly interdependent, and together they promise to redefine industries from finance and defence to supply chains and public healthcare. For example, blockchain can add transparency and trust to AI systems, while AI can optimise blockchain functionality. These technologies working in harmony offer the potential to deliver transformative public services, from decentralised property registries to secure NHS data transfers. The UK must actively foster collaboration across these disciplines to maximise impact and support innovation at scale.

4. Create an industry-government engagement forum

Effective policymaking must be informed by those at the forefront of innovation. To that end, we propose the creation of a high-level industry-government-regulator taskforce, designed to ensure close collaboration and continuous dialogue across sectors. This would enable agile policymaking that reflects the rapidly evolving nature of digital technologies and ensures the UK remains ahead of the curve.

Unlocking long-term economic value

The potential economic impact of digital assets and blockchain is immense. A recent PwC report projects that blockchain could add £57 billion to the UK economy over the next decade. Globally, it could boost GDP by £1.39 trillion by 2030. Sectors like logistics, finance, health, and public services stand to gain the most, particularly through improved transparency, faster data transfers, and streamlined transactions.

Meanwhile, the UK’s legal infrastructure is increasingly ready to support these developments. The Law Commission’s recent endorsement of a new ‘third category’ of property to account for digital assets is a significant step forward, strengthening the legal foundation for cryptoassets, tokenised securities, and carbon credits. In doing so, the UK is proving it has both the legal and technological credibility to lead on digital assets.

Now is the time to act

The UK’s digital asset economy is already the largest in Europe, with £172 billion in on-chain transactions last year. Yet without bold, strategic intervention, we risk being eclipsed by more proactive nations. As innovation accelerates and geopolitical dynamics shift, the UK must seize its moment.

With the right leadership, a coherent regulatory environment, and an ambitious vision for innovation, we believe the UK can cement its status as a global hub for digital assets and blockchain technology.

Now is the time to move from ambition to action.

If you have queries on the above, please contact Matt Green.