Then-Prime Minister Rishi Sunak announced the UK’s ambitions to become a “global crypto-asset hub” as early as 2022. Since then, this goal has looked more like a distant aspiration than a reality. But several recent announcements suggest that the gap between imagination and reality may finally be closing.
Within days of each other, the Financial Conduct Authority (FCA) and the Bank of England took major regulatory steps to prove that the UK is serious about this goal, establishing rules designed to create a favorable climate for crypto adoption by consumers and institutions.
The FCA finalized its crypto rules last month, offering guidance on capital requirements, admissions and disclosures for crypto companies, as well as the wider conduct framework. Separately, the Bank of England removed previously proposed limits on holdings of fiat-anchored stablecoins, as well as lowering the reserve requirements that issues must be held at the central bank from 40% to 30%.
Together, they constitute the clearest signal yet that the UK intends to build a leading crypto regime rather than just talk about it.
Chet Shah is the CEO of Wirex Limited, an FCA-regulated financial technology company based in London.
A reputation earned the hard way
It’s no secret that the UK crypto industry has been lagging behind on the global stage in recent years. The Bank of England’s previous stablecoin proposals, presented in November 2025, faced strong industry backlash as they were too restrictive to support growth. These plans included restricting individuals to hold no more than £20,000 of systemic sterling stablecoins, while companies were capped at £10 million. Many argued that this was too conservative to allow stablecoins to be used on a large scale and would fundamentally dampen the UK’s competitiveness.