From CNBC: 2025-04-30 01:00:00

The U.K. faces a risk of losing fintech and crypto entrepreneurs due to regulatory challenges. Industry leaders argue that the country’s strict approach stifles innovation, leading to potential talent drain to hubs like the U.S., Singapore, and the Middle East. Brexit’s impact and unclear crypto rules also contribute to the concern.

Industry insiders are frustrated with the U.K.’s unclear rules on stablecoins and lack of regulatory clarity for crypto firms. Businesses like ClearBank are awaiting approval to launch stablecoins but are held back by restrictive regulations. The FCA’s roadmap for crypto regulation aims to provide more clarity but faces challenges in implementation.

Crypto companies in the U.K. face issues with being “debanked” by high street banks, limiting their ability to operate. A survey found that half of crypto firms were denied bank accounts or had existing ones closed. The U.K. risks losing out on innovation in the fast-growing crypto space if regulatory challenges are not addressed effectively.

Read more: UK risks losing ground to rival fintech and crypto hubs, execs say