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Britain can “without a doubt” compete with the United States to become a global hub for cryptoassets, the City minister has said, as the government sets out long-awaited legislation to regulate the fast-growing digital assets market.
Lucy Rigby said the proposed framework showed the UK’s intention to “lead the world in digital assets adoption”, amid mounting concern from the crypto industry that Britain has been moving too slowly while rival jurisdictions press ahead.
“This is about recognising that cryptoassets are here to stay, and so we need to modernise regulation to ensure it’s fit for the digital age,” Rigby said. “Firms have been very clear with us that they want regulatory clarity because it will allow them to invest here.”
The legislation, unveiled on Monday, paves the way for a comprehensive UK regulatory regime for cryptoassets such as bitcoin, with rules expected to be in force by 2027. The Financial Conduct Authority will now be responsible for designing the detailed framework.
Crypto firms have long argued that the UK risks falling behind both the US and the European Union in setting clear rules for the sector, potentially losing out on investment and high-skilled jobs. While proponents say digital assets could transform parts of the financial system, regulators remain cautious. The FCA has repeatedly warned consumers that they should be prepared to lose all their money when investing in crypto.
In the US, President Trump has vowed to make America the “crypto capital of the world” and has championed a lighter-touch regulatory approach. The EU has also moved faster, implementing its own regulatory regime for cryptoassets, increasing pressure on the UK to accelerate its plans.
Although the UK and US set up a transatlantic taskforce in September to co-operate on digital assets policy, Washington has already moved ahead in key areas. In July, Trump signed the Genius Act, the first major piece of US federal crypto legislation, which focuses on stablecoins, cryptocurrencies pegged to assets such as the dollar. The president’s family has also backed a number of crypto ventures, further fuelling interest in the sector.
Asked whether Britain could realistically compete with the US, Rigby was unequivocal. “Definitely, without a doubt,” she said.
She described the UK’s approach as “forward-leaning”, adding: “It’s comprehensive and offers consumer protections in the same way we would for other financial products like stocks and shares.”
Research commissioned by the FCA last year found that around 12 per cent of UK adults, roughly seven million people, already own cryptocurrencies, despite the absence of a full regulatory regime and the volatility of digital asset prices.
“We’re recognising that more and more people are investing in cryptoassets,” Rigby said, arguing that regulation is needed both to protect consumers and to support responsible innovation.
The push on crypto regulation comes amid wider concern in Westminster that the UK’s financial services sector is becoming less competitive internationally, with business drifting to rival centres such as Wall Street. In response, ministers have urged regulators, including the FCA and the Bank of England’s Prudential Regulation Authority, to reduce unnecessary red tape.
Asked about the pace of reform at the regulators, Rigby said that “both have made significant steps forward”, but acknowledged that there was “further to go”.
With legislation now moving through parliament, ministers hope the UK can strike a balance between encouraging innovation and maintaining the high regulatory standards that underpin the City of London’s global reputation.
