UK's Blockchain Ambition Faces Global Race Against Time

The Association for Financial Markets in Europe (AFME) has called on the United Kingdom to take a leadership role in developing blockchain-based capital markets, emphasizing the potential of distributed ledger technology to enhance transparency and efficiency in financial systems according to AFME's statement. The group's statement comes amid growing global interest in leveraging blockchain to modernize traditional market infrastructure, though challenges such as regulatory alignment and cross-border interoperability remain unresolved.

AFME's advocacy aligns with broader industry efforts to position the UK as a hub for financial innovation post-Brexit. The association highlighted that blockchain could reduce settlement times, lower counterparty risk, and enable real-time transaction verification, all of which could streamline capital markets. However, it cautioned that widespread adoption hinges on collaboration between regulators, technology providers, and market participants to establish standardized frameworks.

Recent legal actions against high-frequency trading firms underscore the vulnerabilities in current market structures. For instance, a class action lawsuit filed in November 2025 alleges that Citadel Securities LLC and Virtu Americas LLC manipulated Genius Group Limited's stock price through spoofing and baiting orders, artificially deflating its value. The case, which targets trading practices designed to mislead investors, highlights the need for more robust safeguards-a challenge that blockchain proponents argue could be mitigated through immutable, transparent record-keeping.

Despite these calls for innovation, the UK faces stiff competition from global rivals. The European Union and Singapore have already launched pilot programs to integrate blockchain into securities settlements, while the U.S. remains divided on regulatory approaches. AFME's report urges the UK to accelerate its efforts by incentivizing pilot projects, fostering public-private partnerships, and engaging with international bodies to harmonize standards.

The association also warned that delays in adopting blockchain could leave the UK lagging in a rapidly evolving sector. "The window for leadership is narrowing," AFME stated, noting that firms in Asia and the Middle East are aggressively investing in blockchain-based financial ecosystems.