UK Crypto Regulation Lags Behind Global Leaders As Osborne Warns Of Competitive Risks

Former UK Chancellor George Osborne has warned that the country risks falling behind in the global cryptocurrency race due to the current government’s cautious regulatory approach. As a member of Coinbase Global’s advisory council, Osborne highlighted the UK’s lag compared to global leaders such as the United States, Singapore, China Hong Kong, and Abu Dhabi in developing a regulatory environment conducive to crypto innovation [1]. He emphasized the need for the UK to act swiftly to avoid missing out on the transformative potential of digital assets, echoing his concerns about the country’s delayed response to past financial reforms [2].

Osborne criticized the UK’s lack of a comprehensive regulatory framework for digital assets, noting that unlike the EU’s Markets in Crypto-Assets (MiCA) regulation, the UK has yet to introduce clear legislative measures. The Bank of England has also remained hesitant, with Governor Andrew Bailey expressing skepticism about the role of stablecoins as a substitute for traditional fiat currencies [3]. This cautious stance contrasts with the proactive regulatory developments seen in other regions.

The UK is already behind in several key areas, according to Osborne. While the EU and the U.S. have launched retail-friendly crypto products such as spot-ETFs and crypto ETNs, the UK only recently began consulting on lifting its retail ban on crypto derivatives and ETNs, with implementation planned for October 8, 2025 [4]. Additionally, UK regulators are considering a ban on the use of borrowed funds for crypto investments, a move that critics argue could push retail investors toward unregulated markets [5].

Despite these concerns, the government has defended its approach. Acting Chancellor Rachel Reeves has stated the UK’s commitment to becoming a global leader in financial innovation, and the Treasury has expressed interest in establishing a technology partnership with the U.S. However, the contrast between these ambitions and the slow legislative progress has drawn criticism [6].

Osborne’s warnings have coincided with public debates in the UK over crypto’s role in the financial system. Recently, a Coinbase advertisement was banned by UK TV networks, a move criticized by CEO Brian Armstrong as indicative of outdated views on digital assets. Armstrong argued that some UK officials continue to see crypto as a speculative product rather than a transformative financial innovation [7].

To remain competitive, Osborne has called for urgent legislative action and regulatory clarity to position the UK as a global player in the crypto market. Without swift policy reform, he warns, the UK risks losing its status as a leading financial hub. His comments underscore a broader concern that regulatory hesitance could hinder the country’s ability to attract global crypto talent and investment.