Key Takeaways
- The British government has officially responded to a public request to step up efforts regarding Web3 and cryptocurrencies.
- New regulations for cryptocurrency and digitized assets are scheduled for implementation this year.
- The government is in the process of developing a stablecoin that is backed by the British pound.
A U.K.-based group of crypto advocates initiated a formal petition urging the government to prioritize the creation of a regulatory environment that fosters innovation for both stablecoins and digitized assets. The petition also calls for research into how blockchain technology can be used within government operations, and requests the appointment of a dedicated expert, a “blockchain & crypto czar.”
To date, the petition has gathered 19,275 supporters since it was started.
The government issued a response before the petition reached the 100,000 signatures needed to trigger a parliamentary review.
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The Response
The British government responded on September 29, 2025, indicating that it had already released its “Wholesale Digital Markets Strategy” in July, outlining its intention to introduce regulations governing the financial services industry relating to crypto-assets later this year.
The government also communicated that the development of comprehensive frameworks for crypto-assets is underway, including measures to facilitate the creation of a stablecoin backed by the pound, as well as ensuring market access for stablecoins issued outside of the UK.
The “Wholesale Digital Markets Strategy” from July is meant to provide the sector with a system to evaluate, expand, and deliver solutions for tokenized financial assets and streamline post-trade processes.
The proposed framework will also provide a clear path for new crypto-related solutions to progress and rapidly implement necessary modifications.
Moreover, it will ensure a cross-sectoral approach to the integration of blockchain technology within the broader wholesale financial markets.
Finally, the government stated its intention to establish a “Digital Markets Champion” to guide the domestic industry toward these goals.
U.K. Crypto Policy
The recent government update reflects a renewed dedication to fostering innovation, highlighted by a collaborative effort between the U.K. and the U.S.
Through the establishment of the Transatlantic Taskforce for Markets of the Future, both nations will increase collaboration on digital assets, potentially leading to closer alignment in their respective crypto policies.
The announcement regarding the creation of a GBP-backed stablecoin and the framework for handling international stablecoins coincides with the U.S.’s crypto policy solidification and industry preparation for national digital asset initiatives.
Additionally, on October 8th, the U.K.’s financial regulatory body will reverse its ban on crypto exchange-traded notes (ETNs), similar to exchange-traded funds (ETFs).
Many leading companies, including BlackRock and 21Shares, are preparing to introduce Bitcoin and crypto ETNs on the London Stock Exchange.