- Former Chancellor George Osborne believes the UK acted too slowly on cryptocurrency.
- Osborne cautions that the UK risks making the same error concerning stablecoin regulations.
- Coinbase’s widely discussed UK advertisement has increased public pressure for regulatory changes.
Over a decade ago, George Osborne, then serving as the UK’s finance minister, famously used a Bitcoin ATM on camera. Now, he contends that Britain has fallen so far behind in the cryptocurrency arena that it may be impossible to ever catch up.
In a strongly worded opinion piece published in the Financial Times on Monday, the former Chancellor of the Exchequer warned that the UK has already lost its initial advantage and is now “poised to miss the second wave” related to stablecoins.
He attributed the UK’s current position to years of hesitation, restrictive policies, and the absence of competitive regulatory frameworks, leading to the nation being “completely overlooked.”
“While US regulators were skeptical of crypto, a significant opportunity arose for Britain,” Osborne stated. “That opportunity has now passed.”
His urgent appeal comes as momentum builds in the UK to enact new cryptocurrency legislation, coinciding with record-high institutional acceptance of blockchain-based finance. Osborne is currently a member of Coinbase’s global advisory council.
The Race for Stablecoin Dominance
The UK has a track record of success in the fintech sector.
Over the past decade, the UK has produced successful fintech companies such as Revolut, Checkout.com, and Wise.
However, Osborne and others argue that Britain has lagged behind in the cryptocurrency space.
Rishi Sunak, one of Osborne’s successors and former Prime Minister, even pledged to transform the UK into a cryptocurrency hub before leaving office last summer.
Countries including the US, Singapore, and the EU are actively working to regulate stablecoins and tokenized assets, while the UK remains in a state of “deliberation,” according to Osborne.
He criticized the Bank of England’s hesitation to allow commercial banks to issue stablecoins backed by the British pound and cautioned that current proposals risk making them commercially uncompetitive.
“For stablecoins pegged to the pound, you’ll incur a fee,” he explained. “In contrast, dollar-backed stablecoins have minimal transaction costs, and you might even earn a return. It’s not difficult to predict which will become dominant.”
As of 2025, multiple industry reports indicate that over 98% of fiat-backed stablecoins are linked to the US dollar.
Dollar-based tokens such as Tether and USD Coin lead in terms of usage and market capitalization, leaving little room for pound-denominated alternatives to gain traction.
Osborne warned that without a competitive framework, the pound risks being completely marginalized.
Insufficient Progress?
To be fair, the UK has recently taken steps to re-engage with the crypto sector.
The Financial Conduct Authority (FCA) recently lifted its five-year prohibition on crypto-linked exchange-traded notes for retail investors, a decision that will be implemented in October.
The Treasury has also released draft legislation concerning digital assets, and Parliament has re-established its cross-party crypto group to examine the forthcoming regulations.
“We’re offering consumers more options while ensuring the necessary protections are in place,” stated FCA executive David Geale.
However, many industry experts believe the progress is too slow and limited.
According to the regulator’s crypto asset register, only six firms have been licensed with the FCA so far in 2025.
While some may argue that the low number reflects rigorous screening processes, it reinforces Osborne’s concern that the UK is losing ground.
The FCA has not yet released updated rejection figures for 2025, but its September 2024 report revealed that 87% of applications had been rejected, refused, or withdrawn in the preceding 12 months, primarily due to concerns about anti-money laundering.
This rejection rate was more than double the average for traditional financial institutions.
Coinbase’s Viral UK Advertisement
Osborne’s warning comes alongside a more public critique from Coinbase.
The American cryptocurrency exchange recently launched a provocative UK advertisement titled “Everything is Fine,” which satirizes Britain’s economic difficulties and the regulatory hurdles surrounding the crypto industry.
According to CEO Brian Armstrong, the two-minute musical was banned shortly after its release and received both praise from fintech investors and criticism from viewers who found it arrogant and misleading.
Armstrong stated that the advertisement was not politically motivated but was intended to stimulate a broader discussion about financial systems that are failing ordinary citizens.
“When the financial system isn’t working for so many people in the UK, it needs to be updated,” the company posted on X alongside the advertisement.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.