Insights from the Innovate Finance Global Summit

Crypto Assets a regulatory priority

Alex Speedie

May 7, 2025

Chancellor Rachel Reeves used her keynote address at the Innovate Finance Summit last week to signal a renewed push to restore the UK’s competitive edge in financial innovation. Central to her message was the unveiling of draft legislation for a new regulatory regime for crypto assets, part of a broader ambition to make the UK a more welcoming environment for fintech and digital finance.

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Reeves described a vision in which regulation supports, rather than stifles, innovation. Britain, she said, should be a place where firms are encouraged to take risks and experiment in service of their customers, not hindered by administrative friction or policy uncertainty.

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The announcement comes amid growing concern that the UK is slipping behind global competitors. While London has long held a reputation as a financial powerhouse, its leadership in digital assets has weakened. The United States has taken a more assertive approach, with Donald Trump declaring an ambition to make the country the world’s crypto capital. The European Union has already implemented its Markets in Crypto Assets framework, providing regulatory clarity across the bloc. At the same time, jurisdictions such as Singapore and Dubai have moved swiftly to offer similar certainty and incentives for digital asset firms.

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The UK, by contrast, has been slower to respond. The need for more agile and coordinated regulation was a central theme at this year’s summit. Industry voices warned that the failure to keep pace with other financial centres could drive global capital elsewhere, especially as digital and traditional assets become increasingly interchangeable.

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Frustration with the Financial Conduct Authority featured prominently in conversations at the event. Market participants pointed to a pattern of delayed approvals and excessive caution, particularly in processing registrations for digital asset firms. There is a growing perception that the UK’s regulatory environment is becoming a deterrent rather than a draw for high growth fintech businesses.

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This concern is echoed in hiring trends across the sector. The cost of compliance is rising steadily. In 2023, UK FinTech’s posted 614 vacancies for risk and compliance roles. That figure climbed to 744 in 2024. In the first four months of 2025 alone, 341 roles have already been advertised. If current trends continue, the sector will post over 1,000 such vacancies this year, marking more than a 60% increase over two years.

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While this reflects the sector’s increasing regulatory maturity, it also places pressure on early-stage firms. For entrepreneurs deciding where to allocate capital, an onerous compliance burden can tip the scale away from the UK and toward more responsive jurisdictions.

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With the spotlight now firmly on the Treasury and the FCA, the pressure is mounting. The regulator has committed to implementing a full Crypto-Assets regime by 2026. The next key moment will be Reeves’ Mansion House speech, scheduled for 15 July, where she is expected to outline the Government’s Financial Services Growth and Competitiveness Strategy. For fintech leaders and investors alike, that speech may offer the clearest signal yet of whether the UK is truly ready to compete.

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Insights from the Innovate Finance Global Summit

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