Then-Prime Minister Rishi Sunak announced the UK’s ambitions to be a “global cryptoasset hub” all the way back in 2022. Since then, that goal has seemed more like a distant aspiration rather than actuality. But several recent announcements suggest the gap between fantasy and reality might finally be narrowing.
Within days of each other, the Financial Conduct Authority (FCA) and Bank of England have taken major regulatory steps toward proving that the UK is serious about that goal, setting out rules designed to create a workable climate for both consumer and institutional crypto adoption.
The FCA finalized their crypto rules last month, offering guidance for crypto firms’ capital requirements, admissions and disclosures, and the wider conduct framework. Separately, the Bank of England has scrapped the previously proposed limits imposed on holdings of fiat-pegged stablecoins, as well as lowering the reserve requirement issuers must hold at the central bank from 40% to 30%.
Together, they are the clearest signal yet that the UK intends to build a leading crypto regime rather than simply talking about it.
Chet Shah is the CEO of Wirex Limited, a FCA-regulated fintech firm based in London.
A reputation earned the hard way
It’s no secret that the UK’s crypto industry has lagged behind on the global stage for the past few years. The Bank of England’s earlier stablecoin proposals, set out in November 2025, faced strong industry backlash for being too restrictive to support growth. Those plans included restricting individuals to holding no more than £20,000 of systemic sterling stablecoins, while businesses were capped at £10 million. Many argued that this was too conservative to allow stablecoins to be utilized at scale, and would fundamentally hold back the UK’s competitiveness.