Britain’s claim to the global leadership on digital assets is questioned for slow progress in practice. The crypto community in the country thinks that England has fallen back in financial innovation due to regulatory prudence and uncertainty. According to experts, this approach prevents innovation and forces companies to turn abroad.
Delays and concerns in the financial center
The view of many experts is that Britain’s process of becoming a competitive digital asset center is slow compared to other countries. Parliamentary members and some sector representatives call the government to move faster. Former Finance Minister George Osborne said that the current process may leave the country behind in digital asset innovation.
“What I see worries me. Instead of adopting early, we have led us to fall behind,” he said. (George Osborne)
According to the statements of sector representatives, the over -cautious and complex approach of regulatory institutions can cause investments and companies to be moved abroad. In particular, delays and uncertainties in the legislation may cause innovation to end before the start.
“England is talking about being a center for digital assets, but the environment is quite negative in practice. Slowly confirms, too much bureaucracy, constantly suppressed before innovation starts because of uncertainty, Jordan Jordan Walker said (The Bitcoin $115,392.92 Collective).
FCA’s attitude and its effects on the sector
The rules set by the regulatory authority Financial Conduct Authority (FCA) lead to a limitation of the services offered by banks to crypto companies. The criticisms from the sector are in the direction that this approach does not protect consumers, but pushing opportunities abroad.
“The FCA’s approach does not protect consumers, they are damaging them by directing them abroad, Sus Susie Violet Ward (Bitcoin Policy UK CEO).
FCA’s digital assets are also criticized that the “same risk, the same regulation” principle. Because this approach ignores the differences between the technical and economic qualities of different crypto assets. Critics argue that the evaluation of all assets on a single risk creates unnecessary obstacles for the business world.
“Debanking, Bitcoin products and uncertainty from FCA because of the uncertainty from FCA, we saw that companies have left England, Wal Walker said.
Product Bans and Taxation Problems
Since 2020, FCA has banned the sale of some crypto -based investment products. This prohibition was recently withdrawn and the products (ETN) traded on Bitcoin stock exchange (ETN) were allowed to individual investors since October 2025. Nevertheless, this step is considered as a “late and inadequate arrangement ..
Ik We have argued for two and a half years of abolition of access to Bitcoin products for individual investors. This restriction only affected users negatively, Fred Freddie said (Bitcoin Policy UK).
On the other hand, the Cryptoasset Reporting Framework (CARF), which will soon come into force of the Crypto Taxation system of the UK (CARF), is criticized for complexity and high follow -up. The current and new rules of HMRC require detailed reporting of all operations of users.
In terms of taxation, for example, the “Bed and Breakfasting” rule prevents investors from compensating for their damages quickly. In addition, the reduction of the tax exemption limit for capital income tax leads to taxation of more users. Compared to the US, long -term investment advantages in the UK are presented less prominently.
Future and possible changes
According to experts, the UK needs faster and more open policies if she wants to remain competitive in the digital financial sector. It is expected to create a balanced regulatory frame compatible with innovation.
“There is talent and potential in the UK, but excessive arrangement drowns progress, Walker Walker made.
The speed of the steps to be taken and the decisions to be taken for the future of the country seems to determine its place in the competition.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
