On the chain, off the pace: leading blockchain innovation

Recently, George Osborne warned that the UK has been “completely left behind” on crypto regulation. Unfortunately, he’s not wrong. While other major economies have pressed ahead with clear, actionable frameworks for blockchain and digital assets, the UK has been slow to move, and that hesitation is costing us.

 

Over the past few years, the US, EU and Singapore have all made tangible progress in establishing rules of the road for digital finance. In the US, even with a fragmented approach, states like New York and Wyoming have introduced licensing regimes, while the approval of spot Bitcoin ETFs has brought long-awaited regulatory legitimacy to the sector. 

 

The EU’s Markets in Crypto-Assets (MiCA) regulation, coming into force this year, provides a unified framework for firms operating across all 27 member states, a level of clarity global businesses have been quick to embrace. And in Singapore, the Payment Services Act and subsequent Monetary Authority of Singapore (MAS) guidelines have created a balanced environment that welcomes innovation while maintaining strong compliance standards.

 

These jurisdictions are by no means perfect, but they’ve given innovators and investors something invaluable: clarity. When parameters are known, businesses can plan, build, and invest with confidence. That’s the foundation any sustainable blockchain ecosystem needs, whether you’re building financial tools, digital infrastructure or tokenised value models.  

 

Here in the UK, that certainty just isn’t there yet, and it’s starting to show. Projects stall, funding dries up, and the most ambitious founders quietly relocate to more supportive environments.

 

This lack of momentum is not inevitable. The UK still has every opportunity to reclaim leadership in the next wave of financial innovation. Our financial services infrastructure remains world-class: with deep capital markets, a highly skilled workforce, and a global reputation for integrity and rule of law. But to unlock that potential, the government must pass warm words and take real action.

 

 

The barriers to progress

Right now, blockchain firms in the UK face a number of avoidable headwinds. The first and most pressing is a lack of regulatory clarity, companies can’t plan for the long term when the goalposts keep moving. The second is banking access. It’s hard to believe that in one of the world’s leading financial centres, many crypto and blockchain companies still struggle to open or maintain basic banking services. The third challenge is tax; the rules are still unclear and often less competitive than other markets.

 

By contrast, Singapore and Switzerland have clear, straightforward rules, supportive banks, and an environment where innovators know what’s expected. Even in the US, which has its own regulatory challenges, the size of the market and access to capital make it easier for projects to get off the ground. The UK, on the other hand, risks offering neither clear rules nor easy access to capital, a tough place for a sector that depends on agility, confidence, and investment to grow.

 

 

A chance to lead, if we invest where it matters most

Despite these challenges, it would be a mistake to assume the race is over. The UK still has areas where it can lead, particularly in industries that align with its existing strengths. One promising example is media and advertising, a sector crying out for greater transparency. Unlike finance or gaming, this is a less crowded vertical where blockchain can bring immediate, tangible benefits, from reducing fraud and ensuring transparency to improving efficiency across digital supply chains.

 

The advertising supply chain has long been criticised for its opacity. Billions are spent every year, with over £5 billion traded programmatically in the UK alone, yet many advertisers still struggle to see where their money actually goes or how much of it reaches the publisher. Programmatic advertising was meant to make buying ad space more efficient by automating it through real-time auctions rather than manual negotiations. But in doing so, it’s created a complex web of intermediaries, from demand-side and supply-side platforms to data brokers and verification vendors, each taking a slice of spend and adding another layer of complexity.

 

Traditional ad platforms often store data in closed databases, making it difficult to verify, trace, or reuse. With a decentralised model, every impression, bid, and outcome is stored on-chain. Data is immutable, verifiable by all parties, and transparency isn’t optional; it’s built in.

 

If the UK government and regulators were to create a supportive environment for blockchain innovation in advertising, they could nurture a homegrown success story that proves the technology’s value beyond financial speculation. It would also send a powerful signal to global markets that Britain remains serious about fostering innovation.

 

 

The cost of standing still

If we fail to act, the consequences are huge. Talent and capital will migrate to friendlier markets. The UK’s hard-won reputation as a fintech pioneer, which we earned from the era of open banking, will fade. The opportunity to capture a share of one of the world’s fastest-growing markets will vanish.

 

And once those ecosystems take root elsewhere, it becomes incredibly difficult to lure them back. Innovation clusters rely on network effects: where talent, capital and regulation align, success compounds. Lose that alignment, and recovery takes years, not months.

 

This cost of inaction is not theoretical; it is measurable in jobs, investment and global influence. The UK risks cementing its position as a follower, not a leader, in financial innovation. For a country that once set the standard for fintech regulation, that should be a wake-up call.

 

 

The path forward

It’s not too late. With decisive action, the UK can still chart a path that combines its financial heritage with technological innovation. What’s needed is a regulatory framework that is clear, consistent, and forward-looking, one that encourages responsible innovation rather than deterring it through uncertainty. Government and industry must work together to build trust, create clarity, and restore confidence.

 

Britain has the brains, the infrastructure and the global credibility to lead in blockchain and digital assets. What’s missing is momentum. The longer we wait, the harder it will be to catch up. The UK has been left behind, but the race isn’t over yet.

 

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Ben Putley is CEO at Alkimi

 

Main image courtesy of iStockPhoto.com and Andrii Dodonov