UK Risks Missing the Next Crypto Boom—Ex-Chancellor George Osborne Sounds the Alarm

Britain’s dragging its feet on crypto—again. Former UK Chancellor George Osborne just dropped a warning shot: the country’s regulatory dithering could leave it eating the dust of more agile markets.

While Berlin and Singapore court blockchain startups with tax breaks and sandboxes, London’s stuck debating whether digital assets are ‘real’ finance. Spoiler: they’ve processed $8T in transactions this year alone.

Osborne’s critique hits harder when you see the numbers. UK crypto firms face 3x the compliance costs of EU rivals—all while the Treasury frets over ‘risks’ like it’s still 2017. Meanwhile, hedge funds in Zug are stacking Bitcoin like it’s digital gold (because it is).

One cynical take? The City’s too busy lobbying against CBDCs to notice DeFi eating its lunch. Either adapt or watch the next wave of finance—and its tax revenue—dock elsewhere.

Osborne Serves On Global Advisory Council For Crypto Exchange Coinbase

Notably, the former Finance Minister serves on the Global Advisory Council for Coinbase. He called Labour Party’s approach to digital assets “overly cautious” and sluggish. Furthermore, he argues that the regulatory inaction and bureaucratic delays are causing the UK to fall dangerously behind US, the European Union (EU) and Asian countries like Singapore, Hong Kong, Abu Dhabi. 

On 4 August 2025, a Coinbase advertisement – a satire on the financial system- got banned. The UK ban was initiated by the TV Networks. Coinbase CEO Brian Armstrong took to X to say that “there are people in the UK who still think of crypto as some kind of gambling product (a very outdated view), and have completely missed the potential of crypto which is to update and improve the financial system for the benefit of everyone.”

Our ad which got banned in the UK by the TV networks has sparked quite a reaction. If you can’t say it, then there must be a kernel of truth in it.

Needing to update the system and improve society is not a political statement on either party in the UK (some have tried to turn it… https://t.co/VJqyYnnI2W

— Brian Armstrong (@brian_armstrong) August 3, 2025

Coinbase CEO has not only challenged the ban, but insisted that the company will continue to make similar statements. Armstrong’s post received both criticism and support, with people pointing out that “nothing better than getting banned to go viral.”

Nothing better than getting banned to go viral

The message about UK falling behind is painfully accurate – we're not even in the conversation for major settlements anymore.

How's the response been so far?

Well played

— Liz Towler (@LizTowler) August 4, 2025

Meanwhile, UK Minister Calls For Ban On Political Donations Made In Crypto

UK Cabinet Office minister Pat McFadden recently questioned political donations made in crypto. According to a Guardian report published on 18 July 2025, McFadden, a close ally of UK Prime Minister Keir Starmer said, “The funding of democracy is often a controversial area but I think that it’s very important that we know who is providing the donation, are they properly registered, what are the bona fides of that donation.”

The UK has been introducing back-to-back crypto reforms through HM Revenue and Customs (HMRC). The government has introduced another sweeping regulatory MOVE driven by the adoption of the Organisation for Economic Co-operation and Development’s (OECD) Cryptoasset Reporting Framework (CARF). Starting 1 January 2026, all crypto firms will have to collect and disclose detailed user and transaction data.

The Financial Conduct Authority (FCA) has also proposed a rule that WOULD stop retail investors from purchasing cryptocurrencies using borrowed funds that includes credit cards, personal loans, and even loans from crypto-specific lenders. However, some crypto users worry that the UK ban will discourage innovation and limit market access.

Key Takeaways

• According to George Osborne, Britain risks not only missing out on the immense economic benefits of the digital asset revolution—including jobs, investment, and tax revenues—but also undermining its overall competitiveness in the global financial services sector. 

• At the heart of Osborne’s argument is the belief that the current shift towards digital finance represents a pivotal moment, similar to the deregulation of London’s financial markets in the 1980s.