Then-Prime Minister Rishi Sunak announced the UK’s ambitions to be a “global crypto asset hub” by 2022. Since then, that goal has seemed more like a distant aspiration than a reality. But several recent announcements suggest that the gap between fantasy and reality may finally be narrowing.
Within days of each other, the Financial Conduct Authority (FCA) and the Bank of England have taken significant regulatory action to demonstrate that the UK is serious about that goal, establishing rules designed to create a viable climate for cryptocurrency adoption by both consumers and institutions.
The FCA finalized its crypto rules last month, offering guidance for capital requirements, crypto firm admissions and disclosures, and the broader conduct framework. Separately, the Bank of England has removed previously proposed limits placed on holdings of fiat-pegged stablecoins, as well as reducing the reserve requirement that issuers must hold at the central bank from 40% to 30%.
Together, they are the clearest sign yet that the UK intends to build a leading crypto regime rather than simply talking 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 is no secret that the UK crypto industry has lagged behind on the global stage over the past few years. The Bank of England’s previous stablecoin proposals, unveiled in November 2025, faced strong industry backlash for being too restrictive to support growth. Those plans included restricting individuals to holding no more than £20,000 worth of systemic sterling stablecoins, while companies were limited to £10 million. Many argued that this was too conservative to allow stablecoins to be used at scale and would fundamentally hold back the UK’s competitiveness.
