UK Trade Bodies Urge Government to Prioritize Blockchain, Cryptocurrency for 57 Billion Pound Boost

Leading trade organizations in the UK have urged the government to prioritize blockchain technology and cryptocurrencies as a strategic sector, emphasizing the potential for economic growth and innovation. The call comes amid concerns that the UK risks falling behind other financial hubs in developing a supportive regulatory environment for digital assets.

On 31 March 2025, six digital economy trade bodies in the UK sent a joint letter to Varun Chandra, Prime Minister Keir Starmer’s adviser on business and investment. The letter called for transparent and supportive legislation for the cryptocurrency sector. The trade bodies involved included the UK Cryptoasset Business Council, Global Digital Finance, The Payments Association, Digital Currencies Governance Group, the Crypto Council for Innovation, and techUK. They argued that proactive government engagement is crucial for the UK to maintain its status as a global financial leader in an increasingly digital economy.

The request underscores growing anxieties within the sector, as the world competes for dominance in blockchain technology. According to business lobbies, the UK’s robust finance system has not benefited the crypto and blockchain sectors due to ambiguous regulations and lack of government focus. The letter highlighted that regions like the US, Singapore, UAE, and Hong Kong are accelerating investment and government support in this space, urging the UK to remain proactive and competitive to attract businesses, talent, and capital.

The alliance suggested that the UK economy could see a 57 billion British pounds ($73.6 billion) improvement over the next ten years, with the sector potentially raising the global gross domestic product by 1.39 trillion pounds ($1.8 trillion) by 2030. To achieve this, the group recommended appointing a blockchain special envoy, similar to that of the US, and developing a tailored government action plan for blockchain and cryptocurrency. This plan could include a concierge service to attract high-potential firms and leveraging the synergies between blockchain, quantum computing, and artificial intelligence technologies for government services.

The trade associations emphasized that the UK’s deep talent pools, access to capital, world-class academic institutions, and sophisticated regulators provide an ideal environment for digital assets and blockchain innovation to thrive.

In response to the letter, Tom Griffiths, the co-founder and managing partner of crypto compliance advisory firm BitCompli, noted that while the Financial Conduct Authority has talent and plans, the UK is losing pace with other jurisdictions. He urged the FCA to act promptly to capitalize on the opportunities presented by digital assets.

While the UK government has acknowledged the growing importance of digital assets, it has yet to make a decisive move in making cryptocurrency a strategic sector. Previous initiatives, such as proposals for a central bank digital currency and integrating blockchain into financial services, demonstrate interest in the area. However, sector leaders argue that more concrete efforts are needed.

Pressure on UK authorities to adopt a more progressive stance on cryptocurrency is expected to grow as the global regulatory landscape evolves. It remains uncertain whether the administration will act on these calls.