The UK’s former Chancellor of the Exchequer, George Osborne, has criticized the government’s approach to the crypto industry, arguing that they must “catch up” or risk being “left behind” during the second wave of digital assets.
On Monday, former Chancellor and member of Coinbase’s advisory council, George Osborne, weighed in on Chancellor Rachel Reeves and Bank of England governor Andrew Bailey’s crypto strategy.
The former Chancellor explained that since he used Britain’s first Bitcoin ATM 11 years ago, the UK has had multiple chancellors vowing to support the industry, but “next to nothing has happened.” As a result, they had lost the opportunity to lead the crypto industry while US authorities remained skeptical.
We’re still deliberating. The chancellor says she’ll “drive forward” on stablecoins, whatever that means, while the Bank of England’s governor remains unconvinced that commercial banks should issue them. This hesitation risks irrelevance.
The HM Treasury has also published a draft and an explainer document detailing the intended policy outcomes of proposed provisions to establish a complete regime for cryptocurrencies.
The proposed rules are expected to bring exchanges, dealers, and agents into regulatory limits, crack down “on bad actors while supporting legitimate innovation,” and set clear transparency, consumer protection, and operational resilience standards, like traditional financial institutions.
According to the former Chancellor, some of the proposed rules, like requiring sterling stablecoins to be backed only by central bank reserves, guarantee that the UK doesn’t lead the sector, as major financial players will continue to innovate “regardless of the Bank of England’s stance.”
Osborne considers that blaming regulators is “a lame excuse,” as the current restrictive approach “ensures the pound won’t even play a supporting role.” He urged ministers to embrace innovation and set the long-awaited framework.
“We became the world’s financial centre because we weren’t afraid of change. On crypto and stablecoins, as on too many other things, the hard truth is this: we’re being completely left behind. It’s time to catch up,” he concluded.
