Swift Caution on Cryptocurrency Regulation in UK: Osborne Advocates for Quicker Measures
The UK is taking significant strides to establish a clear and comprehensive regulatory framework for digital assets, aiming to position itself as a global leader in the evolving crypto economy. This shift towards embracing digital assets, while ensuring enhanced investor protections, is being spearheaded by the UK's newly appointed Chancellor of the Exchequer, Rachel Reeves.
Currently, the UK lacks a unified set of rules for digital assets, with different agencies handling things in different ways, creating confusion. However, the cautious but progressive approach towards digital assets is set to change. In October 2025, the UK's Financial Conduct Authority (FCA) will lift the retail ban on crypto exchange-traded notes (cETNs), allowing individual investors to access these products through regulated UK exchanges for the first time since 2021.
This relaxation reflects the FCA’s view that the crypto market has matured and that these products have become more mainstream and better understood by investors, warranting regulated retail access under the FCA’s Consumer Duty framework to ensure investor protection. Despite this, the FCA maintains the ban on crypto derivatives for retail clients, citing the higher risks involved.
Alongside these changes, the UK is actively working on establishing a broader regulatory framework, with draft legislation published in April 2025 aimed at bringing crypto trading platforms, intermediation, lending, staking, and decentralized finance (DeFi) activities under the FCA’s regulatory remit. The UK government, as part of its "Plan for Change," is accelerating efforts to provide clear regulation that balances innovation with consumer protection.
Key steps the UK government is taking include integrating crypto into mainstream finance via regulated products like cETNs to encourage institutional and retail participation while managing risks. They are also creating a comprehensive legislative and regulatory framework for crypto businesses, implementing targeted rules such as the Travel Rule for cryptoasset transfers, and engaging in consultations and phased implementation throughout 2025–26 to refine and finalize crypto regulations.
Former UK Chancellor George Osborne has issued a warning about the UK's slow approach to crypto regulations, believing that the UK is being left behind in the global crypto economy due to the lack of a clear, unified regulatory framework. Osborne emphasizes the importance of proper regulations to provide safer access to crypto platforms, better consumer protections, and more trustworthy services for regular people. He also believes that a strong legal foundation is crucial for cracking down on scams and misuse in the crypto space.
With countries like the US, Singapore, the EU, and the UAE already making clear crypto rules and drawing in exchanges with friendly crypto laws, the pressure is on for the UK to catch up. Osborne's message to Reeves is to prioritize crypto regulation to keep the UK relevant in global finance. This involves not just writing rules, but setting up a full framework that welcomes responsible innovation while protecting users.
As the UK moves forward with its crypto regulations, it aims to balance safeguarding consumers with fostering market growth, enabling it to remain competitive globally as crypto adoption continues to rise domestically. The FCA and UK government continue to monitor the crypto market’s development closely to adjust rules and capture new opportunities responsibly.
- The UK's regulatory framework for digital assets, including crypto, is being restructured to provide a clear and comprehensive set of rules, aiming to position the country as a global leader in the evolving crypto economy.
- In October 2025, the UK's Financial Conduct Authority (FCA) will lift the retail ban on crypto exchange-traded notes (cETNs), allowing individual investors to access these products through regulated UK exchanges, reflecting the FCA’s view that the crypto market has matured.
- Former UK Chancellor George Osborne has urged the current Chancellor, Rachel Reeves, to prioritize crypto regulation to keep the UK relevant in global finance, emphasizing the importance of proper regulations for safer access, better consumer protections, and cracking down on scams in the crypto space.
