George Osborne Warns UK Crypto Inaction Risks Global Financial Edge

George Osborne, the former UK Chancellor and current advisor to Coinbase Global, has issued a strong warning that the United Kingdom is at risk of falling behind key global competitors in the rapidly evolving cryptocurrency sector. Speaking in his new role on Coinbase’s Global Advisory Council, Osborne criticized the Labour government’s cautious approach to crypto regulation, emphasizing the urgent need for clearer and more supportive policies to maintain the UK’s position as a global financial hub [1].

Osborne likened the current shift in digital finance to the transformative 1980s “Big Bang” reforms that propelled London to global prominence. He argued that hesitation in adapting to the crypto revolution could result in missed opportunities and a decline in the UK’s influence within the global financial landscape [2]. The former chancellor pointed to the U.S., Singapore, Hong Kong, and Abu Dhabi as examples of jurisdictions that have already established regulatory clarity and supportive environments for crypto innovation [3].

One of Osborne’s key concerns is the UK’s slow progress in regulating stablecoins, a critical component of the digital asset ecosystem. While the U.S. and Hong Kong have introduced frameworks to support stablecoin development, the Bank of England remains hesitant, citing concerns about risks to traditional fiat currencies [4]. Osborne also highlighted the delayed introduction of retail access to crypto derivatives and exchange-traded notes (ETNs) in the UK, which are already available in the U.S. and EU. The UK only began consultations on these products in mid-2025, with implementation planned for October 8 [3].

Additionally, Osborne criticized the UK’s restriction on retail investors using borrowed funds—including credit cards—to trade in cryptocurrencies. While the policy is intended to protect investors, Osborne argued that it could inadvertently push them toward unregulated markets, weakening the effectiveness of regulation [4]. The UK government has responded by emphasizing its commitment to fostering innovation while maintaining regulatory rigor. Acting Chancellor Rachel Reeves stated in April that the UK aims to become “the best place in the world to innovate” and that the Treasury is working on robust crypto regulations to protect and grow the fintech sector [3].

Coinbase CEO Brian Armstrong has echoed Osborne’s concerns, particularly after UK TV networks banned one of the company’s advertisements. Armstrong criticized the UK for harboring outdated views on crypto and for missing a key opportunity to lead in the digital finance revolution [4].

Osborne’s warnings reflect a broader concern within the crypto industry that the UK risks ceding its competitive edge in global finance if it continues to lag in regulatory action. As global rivals accelerate efforts to attract crypto innovation, the UK now faces a pivotal moment in shaping its digital financial future [2].

Source:

[1] Financial, https://www.ft.com/content/2b554e86-a4a6-4361-8db6-04876528b02b

[2] Crypto, https://crypto.news/former-chancellor-uk-risks-falling-behind-on-crypto/

[3] Coinpedia, https://coinpedia.org/crypto-live-news/george-osborne-warns-uk-risks-missing-the-crypto-revolution/

[4] AInvest, https://www.ainvest.com/news/osborne-warns-uk-crypto-inaction-risks-global-financial-edge-2508/