In a recent Financial Times opinion piece, former UK Chancellor George Osborne warned that Britain is being “left behind” in the global race to regulate and embrace cryptocurrencies. His article comes amid mounting concern from industry leaders and policymakers about the UK’s sluggish regulatory response compared to the United States and the European Union. But is Osborne a credible voice on this issue? And is the UK truly at risk of losing its edge in crypto innovation?

Who is George Osborne and is he a Credible Voice on Crypto Regulation?

George Osborne served as Chancellor of the Exchequer from 2010 to 2016, during which he oversaw wide-ranging financial reforms and managed the UK’s recovery from the global financial crisis. Today, he sits on the global advisory council of Coinbase, one of the world’s largest cryptocurrency exchanges. He is also a partner at Robey Warshaw, which is currently being acquired by US investment firm Evercore.

While Osborne’s background lends weight to his commentary, his current affiliations are not without potential conflicts of interest. His association with Coinbase could be seen as aligning his perspective with the broader crypto industry's call for faster, more favourable regulation. Nevertheless, his long-standing expertise in financial policy and global markets makes him a credible - albeit not wholly impartial - contributor to this debate.

Is the UK Lagging Behind in the Global Crypto Race?

Osborne argues that the UK has been slow to establish a clear regulatory framework for digital assets, particularly in comparison with the US and EU. A growing body of evidence supports this claim:

1. Delayed Stablecoin Regulation

While the EU’s Markets in Crypto-Assets Regulation (MiCA) came into force in 2024, and the US Congress passed the GENIUS Act regulating stablecoins in mid-2025, the UK remains in the consultation phase. The Treasury and Financial Conduct Authority (FCA) have outlined plans to regulate fiat-backed stablecoins, but legislation is not expected until at least 2026.

This regulatory lag has drawn criticism from the Payments Association and fintech leaders, who argue that the UK is becoming a less attractive destination for crypto innovation.

2. Limited Retail Access to Crypto Investment Products

Until recently, UK retail investors had no access to cryptocurrency ETFs or ETNs (exchange-traded notes). By contrast, in the US, the SEC has approved a range of Bitcoin and Ethereum ETFs available on mainstream platforms, significantly increasing retail participation.

This is now beginning to change. As of October 8, 2025, the FCA will allow UK retail investors to access crypto ETNs through regulated exchanges - a significant milestone. However, access remains narrower than in the EU or US, where broader products and providers are already active.

3. Industry Concerns and Capital Flight

Numerous reports suggest the UK is losing ground to hubs such as Singapore, Abu Dhabi, and even European competitors like Germany. Regulatory uncertainty, talent drain, and a cautious supervisory approach have dampened enthusiasm among crypto entrepreneurs and investors.

Recommendations: How the UK Can Regain Momentum

To reassert itself as a leading global financial centre, the UK must move swiftly and strategically. The following recommendations reflect emerging best practices from the US, EU, and Asia:

1. Fast-Track Stablecoin Legislation

The government should prioritize stablecoin regulation by introducing legislation in 2025, not 2026. Clear standards for issuance, reserve backing, and redemption are critical to supporting both innovation and financial stability.

2. Broaden Retail Investor Access

Building on the upcoming ETN launch, regulators should expand access to additional crypto investment vehicles, including diversified crypto index funds and spot ETFs. Strong investor protections and risk disclosures can be balanced with access and innovation.

3. Embrace “Smart Regulation”

The UK should consider adopting a more adaptive regulatory framework - one that supports innovation through sandbox programs and tiered licensing, like models in Singapore and the UAE. This includes faster application processing and clearer compliance guidance.

4. Invest in Talent and Infrastructure

Retaining fintech and blockchain talent will require increased government support for R&D, academic partnerships, and startup incentives. Regulators could also benefit from international secondments to learn from more agile jurisdictions.

5. Balance Oversight with Opportunity

Protecting consumers and financial markets is vital, but regulation should not be used to avoid risk altogether. The UK must foster a regulatory environment that encourages responsible innovation rather than stifling it through excessive caution.

George Osborne’s warning is not unfounded. The UK’s current regulatory trajectory risks marginalizing it in a sector poised to reshape global finance. While the recent approval of crypto ETNs for retail investors is a welcome step, it may not be enough to close the gap with the US or EU unless followed by more decisive action.

With the right legislative urgency, a broader embrace of innovation, and clear strategic vision, the UK still has the tools to become a leader in the next phase of financial evolution.