Blockchain-based payments firm Ripple has urged UK policymakers to accelerate crypto regulations, warning that the country risks falling behind jurisdictions such as the European Union and global financial centers like Singapore and Hong Kong.
In a recent UK Policy Summit, Matthew Osborne, policy director of Ripple Europe, revealed that the UK has a globally competitive financial sector and the foundational strengths to lead the ever-evolving crypto industry.
“There is a huge opportunity for digital assets in the UK. With growing consensus that blockchain technology will transform financial markets, the UK already boasts a globally leading, competitive financial services center. And with particular strengths in FX, capital markets, insurance and professional services, the UK has all the building blocks to be a global leader in digital assets,” panelists said.
A Critical Moment for Regulatory Action
The discussion comes as the UK is working to publish a crypto regulatory framework later this year. The rules cover stablecoins, staking, and broader crypto activities, with final regulations targeted for 2026.
Despite the potential of these regulations, panelists at the summit warned that the UK must act swiftly to maintain its competitive edge. They cautioned that the country risks losing its standing as a leading digital asset hub without timely regulatory clarity.
They added that as other jurisdictions advance their regulations, the UK’s window of opportunity is closing.
Penalists noted that the UK has a “second-mover advantage”—the chance to learn from the experiences of other regions like the EU and implement a regulatory approach that balances the benefits of digital assets with risk mitigation.
The Role of Stablecoins in the Digital Asset Ecosystem
A key takeaway from the summit is the critical role of stablecoins in the digital asset sector. Stablecoins, digital assets pegged to fiat currencies like the US dollar and the Euro, are increasingly being used to trade and settle transactions in the digital asset space and for cross-border payments.
Penalists believe that the UK's ability to foster a competitive digital assets sector will depend on ensuring that a variety of stablecoins, including those issued overseas, can be used.
To move forward, Ripple urged the Financial Conduct Authority (FCA) to fast-track the development of a stablecoin-specific rulebook, which would provide clarity and enable the UK to take advantage of this asset class's opportunities.
The summit also discussed the transformative potential of tokenization. They point out the potential of this innovation to improve the efficiency, transparency, and accessibility of financial markets.
UK Finance projects that digital assets could account for up to 10% of global capital markets by 2030, representing a value of $4-5 trillion.
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