A coalition of UK digital asset and blockchain advocacy groups has urged the government to take a more strategic approach to the sector, warning that without decisive action, the country risks falling behind global competitors.

The UK Cryptoasset Business Council (UKCBC), techUK, Global Digital Finance, The Payments Association, Digital Currencies Governance Group (DCGG), and the Crypto Council for Innovation have jointly addressed a letter to Varun Chandra, the Prime Minister's Business & Investment Special Advisor at No.10. The letter outlines key policy recommendations to strengthen the UK's position as a hub for digital assets and blockchain innovation.‍

Calls for Policy Alignment and Investment

As jurisdictions like the US, Singapore, UAE, and Hong Kong ramp up investment and government support in the sector, the UK must act decisively to remain an attractive destination for businesses, talent, and capital, the groups argue.

The industry representatives are calling for the appointment of a blockchain special envoy who would drive policy alignment, encourage public sector adoption, and enhance the UK's global leadership in the space. They are also advocating for the development of a government action plan for blockchain and digital assets, similar to efforts in artificial intelligence, to attract investment and provide regulatory clarity for industry growth. 

Additionally, they emphasize the importance of recognizing the synergy between blockchain, AI, and quantum computing, highlighting how integrating these technologies can enhance security, scalability, and innovation in digital finance and beyond. Furthermore, they propose the creation of an industry-government engagement forum to establish a structured dialogue between policymakers and industry stakeholders, ensuring informed regulatory decisions and cross-sector collaboration.‍

The UK’s Position at a Crossroads

The UK has already made notable strides in establishing a regulatory framework for digital assets, with legal clarity around cryptoasset ownership and plans for a central bank digital currency (CBDC). However, industry leaders warn that without a coordinated and proactive strategy, the country could lose its competitive edge.

"The UK has the talent, the legal framework, and the regulatory momentum to be a leader in blockchain and digital assets," the letter states. "But to seize this opportunity, we need clear and decisive action from the government."

The letter comes amid increasing global competition in digital finance. The UAE and Singapore have positioned themselves as crypto-friendly jurisdictions with clear regulatory frameworks, while the US and Hong Kong have launched initiatives to attract blockchain firms and investment.

With the UK government already focused on AI and fintech, the advocacy groups hope their recommendations will encourage policymakers to take a similarly structured approach to blockchain and digital assets.