The UK faces significant hurdles in the process of becoming a global crypto asset hub, potentially hindering the crypto space。The dual challenge involves barriers to retail customers accessing crypto products and the complexity of companies trying to open and maintain bank accounts in the UK.。

Retail Customer Acquisition Risk

Retail customers face serious challenges to their ability to access crypto products, and the driving factor behind this appears to be strict application reporting requirements imposed by the Payment System Regulator (PSR).。While these measures strengthen risk management, they inadvertently deprive potential customers of access to basic financial services, creating obstacles for cryptocurrency businesses.。

Cryptocurrency Companies' Banking Dilemma

Cryptocurrency companies in the UK are having trouble opening and maintaining bank accounts, forcing many to operate offshore.。This limitation hinders innovation, scalability, and the introduction of new products and services worldwide.。

International examples show that banks can support cryptocurrency-related businesses while ensuring regulatory compliance。Many jurisdictions around the world have taken steps to prevent discrimination against regulated crypto asset service providers, boosting confidence in banks and increasing transparency.。In contrast, the challenges facing the UK have led some businesses to seek banking services in other countries, raising concerns about the concentration of risk in the sector.。

Parliament's blockchain propaganda

To address these challenges, MP Natalie Elphicke has called on the UK government to do more to harness the power of blockchain technology.。

Speaking at an event hosted by an all-party parliamentary group on blockchain technology, Elphicke stressed the need for the UK to play a leading role in understanding and applying blockchain technology.。She sees potential for blockchain to provide global supply chain transparency, digital identity and data usage。

Regulatory Pace and Cooperation

Elphicke urged the UK to keep up with international regulators and work with other countries on blockchain issues.。While the UK has said it wants to be a cryptocurrency hub, it has done little in terms of blockchain policy.。The blockchain APPG group, chaired by Elphicke, plans to launch a roundtable discussion and solicit industry input on how the UK can leverage the skills, opportunities and diversity of the blockchain space.。