UK Government under pressure to back crypto market

Crypto leaders have urged the UK Government to create an action plan for the blockchain industry to remain competitive.

In a letter to the prime minister’s special advisor on business Varun Chandra, a group of trade bodies called for “greater strategic focus and alignment” in the blockchain ecosystem.

Six bodies including techUK, the UK Cryptoasset Business Council and the Crypto Council for Innovation outlined four recommendations to ensure the UK doesn’t miss out on the sector’s predicted economic boom.

The group cited “geopolitical events”, like Donald Trump’s approach to the market, as the cause of a new global race to “attract and onshore” digital assets businesses.

During his presidential campaign, Trump pledged to make the US the “crypto capital of the planet” and reform the country’s approach to cryptocurrency policy. It is believed his win in November led Bitcoin’s value to rise by more than 50 per cent, reaching a record-high of $106,000 (£84,000) in December.

Since being elected, Trump has issued an executive order to establish a cryptocurrency working group and launched a crypto task force, both aimed at proposing a new regulatory framework for the industry.

And last month, he created a government crypto reserve, named the Strategic Bitcoin Reserve and Digital Asset Stockpile.

“It is vital that the UK is cognisant of these developments and remains flexible and proactive in its approach”, the letter said.

The trade bodies cite research carried out by PwC estimating that blockchain technology could be worth up to £57bn to the UK economy over the next decade and a more recent report by the same firm estimating it could boost global GDP by almost £1.4tn by 2030. According to the report, 2025 is the “tipping point” when blockchain technologies will reach large-scale adoption.  

Beside an action plan, crypto leaders called for a blockchain special envoy to ensure policy alignment, government-industry collaboration, attract investment, and bridge the gap in leadership for the sector, as well as for an industry-government engagement forum to help shape “forward-thinking” blockchain legislation.

They also asked ministers to recognise the synergy between blockchain, AI, and quantum computing to enhance “security, scalability, and functionality”. They claim recognising these technologies work best in “tandem”, will help fix societal challenges and unlock “unprecedented levels” of innovation and productivity.