UK Trade Bodies Urge Government to Prioritize Cryptocurrency Development

Calls for a Special Envoy and Strategic Action Plan

In a recent letter, several UK trade associations have urged Prime Minister Keir Starmer’s administration to recognize cryptocurrency and blockchain technology as a ‘strategic priority.’ This coalition of six influential digital economy trade bodies is advocating for the appointment of a dedicated special envoy for cryptocurrency, along with the creation of a substantial action plan targeting digital assets.

The letter, dated March 31, was directed to Varun Chandra, special adviser to the Prime Minister on business and investment. The associations involved include prominent organizations such as the UK Cryptoasset Business Council, Global Digital Finance, The Payments Association, Digital Currencies Governance Group, the Crypto Council for Innovation, and techUK. They are pushing for a more coherent and aligned strategy that aims to stimulate investment, job growth, and economic expansion within the UK’s crypto sector.

Learning from International Examples

The trade bodies referenced the United States’ evolving stance on cryptocurrency, noting a policy shift that began during President Donald Trump’s administration when a special envoy—or “crypto czar”—was appointed to oversee digital asset matters. They highlighted the opportunity presented by ongoing negotiations for an economic trade deal between the UK and the US, suggesting that the UK could adopt similar strategies to foster leadership in blockchain and financial technologies.

"Britain’s commitment to technological cooperation with the United States presents a significant opportunity to mirror the United States’ ambition in fostering leadership in blockchain and digital assets," the letter emphasized.

Recommendations for Government Action

The coalition has put forth several recommendations aimed at enhancing the UK’s position in the global crypto landscape. Key among these is the proposal to establish a special envoy to coordinate policy and promote innovation. Additionally, they call for a tailored government action plan for crypto and blockchain technologies, which would include fostering a "concierge service" that could attract high-potential firms to the UK market.

Furthermore, the groups suggest a collaborative forum involving industry leaders, government officials, and regulators be created to facilitate informed decision-making and cross-sector cooperation. They believe this forum is vital for ensuring that the UK remains competitive in the fast-evolving digital asset space.

Economic Potential of Cryptocurrency

The coalition asserts that embracing cryptocurrency and blockchain technology could significantly aid the UK economy, potentially contributing an estimated £57 billion ($73.6 billion) over the next decade. More broadly, they anticipate that the global impact of this sector could lead to an increase in global GDP by £1.39 trillion ($1.8 trillion) by 2030. Prominent figures in the crypto industry have echoed the sentiment for increased urgency in governmental action. Tom Griffiths, co-founder and managing partner of the crypto compliance advisory firm BitCompli, expressed concern that the UK is falling behind jurisdictions such as Dubai and Singapore. He urged the Financial Conduct Authority to take swift action, warning that the UK risks losing out on significant economic opportunities provided by digital assets unless there is a material shift in policy focus.

Conclusion

As the debate around cryptocurrency regulation and growth intensifies, the call from UK trade bodies highlights the need for a strategic approach to digital assets and blockchain technology. By aligning with global trends and fostering a conducive environment for innovation, the UK has the potential to become a leading player in the rapidly evolving digital economy.

Share this article: