As global jurisdictions race to regulate digital assets, Crypto.com’s George Tucker argues that the UK must prioritise proportionate, interoperable crypto regulation to remain a leader in financial innovation.
Across the globe, digital assets are no longer a speculative side note; they are an integral part of 21st-century finance. With new investment, infrastructure and innovation emerging daily, the jurisdictions that thrive will be those that enable growth, not restrain it. The UK has an opportunity to lead, but only if it strikes the right balance.
There are real foundations to build on. Through the Financial Services and Markets Act and commitments to phased stablecoin and crypto exchange rules, the UK has begun drawing a roadmap for digital assets. The Bank of England’s ongoing work on a digital pound and the Financial Conduct Authority’s (FCA) Digital Securities Sandbox, where leading financial institutions are piloting tokenised bonds and settlement platforms, are all signs of positive momentum.
With progress accelerating internationally, the UK cannot afford to fall behind.
Just last week, US Congress progressed its landmark crypto legislation with the GENIUS Act, with two additional bills getting through the House and now under Senate consideration, aimed at positioning the US as the “crypto capital of the world”. The EU’s MiCA framework is already operational, providing a unified licensing regime that gives firms clarity and access across 27 member states.
Meanwhile, jurisdictions in the Gulf and Asia are taking an even more strategic stance. Singapore and the UAE have long introduced legal clarity to encourage digital asset development, leveraging regulation to attract capital, talent and innovation. As a result, both have become magnets for crypto firms, with Singapore licensing over a dozen major layers under its Payment Services Act and Dubai’s VARA attracting global exchanges and institutional capital.
This global competition matters. If the UK is to excel as a financial centre of excellence, it needs to ensure that digital asset regulation is not only robust, but proportionate, interoperable, and pro-innovation.
As the UK refines its regulatory approach, there is an important opportunity to strike the right balance between robust oversight and enabling innovation. Ensuring that requirements are streamlined, expectations are clearly communicated, and compliance is proportionate will help prevent unintended barriers to growth and restore the UK’s competitiveness as a destination for responsible digital asset activity.
Avoiding duplication, both within the UK and across international regimes, is key to fostering a coherent and efficient regulatory environment. With the FCA supervising non-systemic issuers and the Bank of England overseeing systemic payment systems, firms get caught up in overlapping processes around custody, redemption, and asset backing. Cryptoasset firms already face rigorous standards in areas such as financial crime, custody, and disclosures.
The aim should not be to “gold-plate” these requirements, but to ensure a level playing field with traditional finance, alignment with existing Electronic Money Institution (EMI) principles and global regulatory norms. A proportionate regime, one that distinguishes risk levels across asset types and business models, would also align with the UK’s broader economic goals. The government has made clear its ambition to boost investment, competitiveness, and financial services exports.
Crypto and blockchain-based technologies can play a key role in advancing those priorities, from modernising payments to tokenising capital markets and expanding access to finance.
For a government focused on driving economic growth, delivering a competitive business environment, and restoring the UK’s position as a global innovation leader is vital. A supportive and coherent framework can help channel private capital, create jobs in the fintech sector, and position London as a hub for next-generation finance.
To realise that potential, the regulatory environment must send the right signals.
Constructive engagement with industry can foster an atmosphere of trust, transparency and mutual learning. This presents an opportunity to strengthen the partnership between regulators and industry. Collaboration is vital to ensuring that regulatory frameworks are practical, clear, and conducive to innovation and growth. In the EU, MiCA’s success so far has been driven in part by extensive dialogue between policymakers and technical experts. In the US, a growing bipartisan consensus and engagement with the sector during the legislative process is translating into better regulations.
The UK should embrace this same spirit. Crypto firms are not asking for light-touch regulation; they are calling for clarity, coherence, and a level playing field. A fragmented or overly cautious approach risks unintended consequences: driving activity offshore, limiting innovation, and weakening the UK’s fintech ecosystem.
The prize is significant. The total market size of cryptocurrencies alone is more than $2.7 trillion and growing, comparable to Italy’s GDP. Ensuring the UK is a hub for the digital asset economy has the potential to unlock new job opportunities, attract investment, and create a more efficient and inclusive financial infrastructure. With the right strategy, the UK can position itself not only as a rule-setter but as the destination of choice for responsible innovation.
George Tucker serves as EVP and General Manager for the UK & Europe at Crypto.com, and also heads External Affairs. He joined Crypto.com in early 2022 as Head of Communications and Government Relations for EMEA, bringing with him strong experience in strategic communications, regulatory engagement, and advising across government and corporate sectors including roles at Actum, Imperial Brands, and the Foreign and Commonwealth Office.
