UK Trade Associations Urge Government to Appoint Crypto Envoy

A coalition of leading UK trade associations has called on Prime Minister Keir Starmer’s government to appoint a special envoy for crypto and develop a comprehensive action plan to support the digital assets and blockchain sector. The move comes as the UK seeks to maintain its competitive edge in the rapidly evolving fintech landscape.

In a recent letter addressed to Varun Chandra, Starmer’s special adviser on business and investment, six UK digital economy organizations stressed the need for stronger strategic alignment to unlock investment, growth, and job creation within the crypto industry. The signatories include the UK Cryptoasset Business Council, Global Digital Finance, The Payments Association, the Digital Currencies Governance Group, the Crypto Council for Innovation, and techUK.

The coalition highlighted recent developments in the U.S., including Donald Trump’s crypto-friendly policies and the appointment of a dedicated “crypto czar,” as evidence that the UK risks falling behind in the global fintech race. They urged the UK to match U.S. ambition by appointing a blockchain-focused envoy to coordinate policy, drive innovation, and strengthen the country’s competitiveness in global fintech markets.

The letter proposed the creation of a national action plan focused on crypto and blockchain development. This plan should include a government-backed concierge service aimed at attracting high-potential startups and projects. The coalition also recommended recognizing the convergence between blockchain, artificial intelligence, and quantum computing, particularly in their applications for public sector services.

Additionally, the letter called for the establishment of a high-level industry-government-regulator forum to improve collaboration and policy transparency. The group emphasized that the UK, with its strong talent pools, access to capital, top-tier universities, and robust regulatory frameworks, is well-positioned to lead in blockchain and digital assets. They estimate that embracing this sector could contribute up to £57 billion to the UK economy over the next decade, while globally, blockchain and crypto could add £1.39 trillion to GDP by 2030.

Tom Griffiths, co-founder of crypto compliance firm BitCompli, echoed the concerns, stating that while the Financial Conduct Authority (FCA) has talent and foresight, the UK is losing ground to jurisdictions like Dubai, Singapore, and parts of the EU. “If the FCA doesn’t act now, the UK risks missing out on the long-term economic benefits this sector offers,” Griffiths warned.

In September, the UK government introduced a new bill aimed at clarifying the status of digital assets, including non-fungible tokens (NFTs), cryptocurrencies, and carbon credits, as “things” and “personal property” under the nation’s property laws. The UK has been among the countries that have ramped up regulatory efforts following some high-profile bankruptcies last year. The FCA oversees crypto activities, focusing on anti-money laundering measures and consumer protection. Last year, the FCA implemented new rules that require crypto firms to register with the financial regulator and have their marketing materials approved by an FCA-authorized firm. Key updates include exchanges providing clear warnings to customers about the risks associated with crypto investments.