Introduction
The UK’s crypto market is entering a new phase. Interest in digital assets like Bitcoin and Ethereum continues to rise. Financial regulators are beginning to shift their views, and industry leaders are pushing for clearer rules. Each week brings new developments, making it essential to stay updated.
This article reviews the most significant UK crypto headlines from the past week. From regulatory updates to industry moves, we highlight the top blockchain UK updates every reader should know. If you're tracking crypto trends, investing, or simply exploring the evolving landscape, this summary will help you stay ahead.
The UK is aiming to become a global centre for fintech and blockchain innovation. However, progress has been slower than in regions like the EU, the US, and Asia. This week’s developments show a clear intention to catch up — with new hires at the FCA, product rollouts planned for 2025, and tighter tax reporting rules coming soon.
Here’s what we’ll cover in this article:
- Upcoming access to crypto-linked investment products for retail traders
- New leadership in the FCA’s crypto oversight team
- George Osborne’s warning about Britain losing its edge
- Why Coinbase sees the UK as a growth market
- HMRC’s new tax reporting rules starting in 2026
For ongoing expert analysis and real-time news on crypto news UK, visit our trusted platform Immediate Luminary. But first, let’s explore the most important events from this week in detail.
Regulatory Shift: Retail Access to Crypto ETNs from 2025
A major policy shift is coming to the UK crypto market. The Financial Conduct Authority (FCA) has confirmed that starting on October 8, 2025, everyday investors will be allowed to trade crypto exchange-traded notes (cETNs). This marks the end of a ban that has been in place since 2021.
Crypto ETNs are financial products that follow the price of digital assets like Bitcoin or Ethereum. Instead of buying coins directly, investors purchase notes that move with crypto prices. These are traded on regulated stock markets, giving a more familiar way to access crypto exposure.
Why the Ban Is Being Lifted
When cETNs were first restricted, the FCA said they were too risky for the public. But as the global crypto market matured, the UK faced pressure to update its stance. Other regions such as the European Union and the United States have already allowed similar products under tighter rules. UK investors were missing out on these opportunities.
The FCA now believes experienced investors should have access — but with clear warnings. These products are not covered by the Financial Services Compensation Scheme (FSCS), meaning losses are not protected.
What Investors Should Know
- New access: From 2025, retail investors will be able to buy cETNs through regulated platforms in the UK.
- Risk level: Prices may swing sharply. These are not low-risk investments.
- No compensation: If the investment fails, there’s no public safety net.
How the Industry Is Reacting
Several companies, such as ETC Group and 21Shares, have expressed interest in entering the UK market. These firms already offer cETNs across Europe. Brokers and trading platforms are preparing to list these products once the rules take effect.
Many see this change as a smart move that brings the UK in line with global standards. It also opens new paths for regulated crypto investing, without requiring users to handle coins or private wallets.
| Region | Retail Access to Crypto Investment Products |
|---|---|
| UK | Permitted from Oct 2025 (cETNs only) |
| EU | Available via ETPs under MiCA rules |
| USA | Active market for Bitcoin ETFs |
| Singapore | Limited access for qualified investors |
For investors tracking crypto trends, this development brings a more secure way to participate without leaving the UK regulatory system.
FCA Strengthens Its Crypto Division
In another sign of change, the Financial Conduct Authority (FCA) is building a stronger team to manage crypto regulation. One of the most notable moves is the hiring of Anurag Bajaj, a former executive at Standard Chartered. He will now help lead the FCA’s work on digital assets and payments.
This appointment shows the FCA is shifting from simply observing crypto markets to actively shaping them. Bajaj brings years of experience in finance, risk control, and international regulation — exactly what the FCA needs as crypto becomes more mainstream.
What This Means for Crypto in the UK
- Expertise at the top: Bringing in people with direct knowledge of financial markets helps the FCA make better rules for the crypto sector.
- Focus on innovation: The new crypto unit aims to support responsible blockchain development, not just restrict it.
- Faster decision-making: With more internal resources, the FCA can respond to crypto trends and risks more quickly.
Regulatory Strategy Moving Forward
The FCA has also started hosting more consultations and pilot programs with crypto companies. These “sandbox” sessions let businesses test new products under close supervision. It's part of a wider effort to build trust between regulators and the crypto industry.
“We’re no longer just observers. We want to be part of building the future of finance,” said one official familiar with the FCA’s digital strategy.
While the FCA still warns about crypto risks, it’s clear the tone is changing. The UK is no longer blocking the door — it’s inviting serious players inside. And with experienced voices like Bajaj involved, the rules that come next are likely to be more balanced and realistic.
For businesses following blockchain UK updates, this is a strong sign that engagement with regulators is now not just possible, but encouraged.
Criticism from George Osborne: Is the UK Falling Behind?
This week, the UK’s slow progress on crypto regulation came under fire from a well-known voice. George Osborne, former Chancellor of the Exchequer, warned that the country is losing momentum. In an article for the Financial Times, he said the UK is now “lagging behind” more agile economies.
According to Osborne, the UK’s cautious approach is holding back innovation. While other countries are rolling out full crypto legislation, Britain remains stuck in consultation mode. That gap could push talent, companies, and investments to more welcoming markets.
Key Concerns Raised
- Regulatory delay: There’s no firm timeline for when a full UK crypto law will arrive.
- Lack of clarity: Businesses are unsure which activities are legal or how they will be taxed.
- Missed opportunities: The UK could be a leader in blockchain, but others are moving faster.
What Osborne Wants to See
He called for urgent action on key issues, including:
- Clear guidance for stablecoins and tokenized assets
- Licensing for crypto exchanges operating in the UK
- Support for Web3 innovation across finance and tech sectors
His message is clear: the UK government must treat crypto and blockchain as a strategic priority, just like fintech or green energy. Without that shift, the country risks becoming irrelevant in the next phase of digital finance.
Response from the Industry
Osborne’s comments echo what many in the crypto space have been saying for months. Startups, investors, and exchanges are asking for faster, simpler rules — not more delays. The FCA’s recent moves are a good start, but more needs to happen at the policy level.
As crypto trends continue to evolve globally, the UK must decide whether to lead or follow. If leaders like Osborne continue to speak out, momentum for reform could finally build.
Coinbase UK: The Second Mover Advantage
While some critics want the UK to move faster, others see value in moving more carefully. Coinbase UK, the British arm of the major global crypto exchange, says the country has a unique opportunity to learn from others. This is what they call a "second mover advantage."
Instead of rushing to be first, the UK can watch how other countries regulate crypto, see what works and what fails, and then design better rules. This strategy could help avoid common mistakes made in the US and EU.
Why Coinbase Is Expanding in the UK
Coinbase has made London its biggest hub outside the United States. The company is growing its local team and deepening its relationship with regulators. Their goal is to help shape the UK’s crypto rulebook — and build trust with both policymakers and the public.
Kathe Groves, head of Coinbase UK, recently said, “We’re here for the long term. The UK is open to dialogue, and that makes it a promising place to grow.”
What the UK Can Learn from Others
| Region | Key Lessons |
|---|---|
| EU | MiCA shows how to create full legal coverage for crypto assets and companies |
| US | Bitcoin ETFs bring legitimacy, but lack of clear rules creates confusion |
| Asia (e.g. Singapore) | Licensing and compliance can work well when paired with innovation support |
Challenges Ahead
Even with a smart strategy, waiting too long can be risky. Coinbase has warned that firms may still leave the UK if clarity doesn’t come soon. The window of opportunity won’t stay open forever.
Still, with strong institutions and a growing interest in crypto, the UK could become a model for balanced regulation. Coinbase’s long-term investment in the region is a strong vote of confidence.
For investors and startups tracking blockchain UK updates, this is a space to watch closely in the months ahead.
Upcoming HMRC Rules: Crypto Reporting in 2026
The UK government is getting serious about tax transparency in crypto. From January 2026, new rules will require crypto platforms to collect and report user data to HMRC — the UK’s tax authority. This is part of a global push to stop tax evasion using digital assets.
The move follows guidance from the OECD’s Crypto-Asset Reporting Framework (CARF). Over 40 countries have agreed to introduce these standards, and the UK is one of the early adopters.
What the Rules Will Require
Crypto service providers — including exchanges, wallet apps, and brokers — will need to gather more detailed information from their customers. This includes:
- Full legal name and verified ID
- National Insurance or Tax ID number
- Annual records of trades, deposits, and withdrawals
These records will be shared with HMRC and may also be exchanged with tax agencies in other countries, under international data agreements.
What Happens If Platforms Don’t Comply?
The fines are strict. Firms that fail to report required data could face:
- A minimum penalty of £300 per user
- Daily fines until issues are corrected
- Potential regulatory action or license suspension
What Investors Should Do
These changes mean that anyone holding or trading crypto in the UK should start preparing now. Keeping clean records, using regulated platforms, and reporting earnings correctly will be more important than ever.
Why It Matters
This is one of the clearest signs that crypto is entering the regulated mainstream in the UK. Investors can expect tighter rules, but also more legal certainty. For companies, it means rethinking how they handle user data, security, and tax compliance.
In short: the era of anonymous trading is ending — and transparency is becoming the new standard.
Global Comparison: Where the UK Stands in the Crypto Race
The UK has set big goals for becoming a leader in digital finance. But in the race to shape the future of crypto, is the country keeping up? A look at how other regions are moving reveals both strengths and gaps in the UK’s approach.
What Other Countries Are Doing
- European Union: The EU has already approved MiCA — a full set of laws covering crypto markets, stablecoins, and digital asset licensing. This gives crypto businesses clear rules across 27 countries.
- United States: After years of legal battles, the US launched Bitcoin ETFs in 2024, attracting major institutional investors. However, many crypto firms still face regulatory uncertainty.
- Singapore and UAE: These smaller but tech-focused economies offer crypto companies fast-track licensing, clear tax policies, and innovation-friendly regulation.
Where the UK Stands
So far, the UK has taken a cautious, step-by-step approach. Recent moves — like reopening cETNs for retail and tightening tax reporting — show progress. But the country still lacks a complete legal framework like MiCA in the EU.
According to many in the industry, the UK has the tools to lead — including:
- World-class legal and financial infrastructure
- A strong presence in global fintech markets
- Support from large platforms like Coinbase
Quick Snapshot: Global Crypto Policy Landscape
| Region | Legal Framework | Retail Investment Access | Bitcoin ETFs |
|---|---|---|---|
| UK | In progress (partial policies by FCA/Treasury) | Available from 2025 (cETNs) | No |
| EU | MiCA fully approved | Yes (ETPs across member states) | No |
| USA | Fragmented rules, SEC-led enforcement | Yes | Yes (since 2024) |
| Singapore | Clear licensing under MAS | Yes, with limits | No |
If the UK wants to lead, it must speed up its policy process and support crypto companies before they move elsewhere. Innovation loves clarity — and time is running out to provide it.
Conclusion
The UK crypto landscape is clearly changing. From the upcoming return of cETNs for retail traders to new tax rules from HMRC, the country is building its own path through the digital finance revolution. The FCA is strengthening its team, platforms like Coinbase are investing more locally, and high-profile voices like George Osborne are pushing for faster reforms.
But challenges remain. Compared to other global hubs, the UK still has work to do to provide the legal certainty and regulatory clarity the crypto sector needs. With stronger leadership and smarter policies, the country has every chance to become a major player in blockchain innovation.
For crypto investors, businesses, and developers, now is the time to pay attention. The decisions made in the next 12–18 months will shape the future of crypto in the UK for years to come.
If you want to stay ahead of market changes, policy shifts, and major crypto news UK updates, we recommend visiting Immediate Luminary. The platform offers real-time insights, expert analysis, and essential tools to help you track blockchain UK updates and stay on top of evolving crypto trends.
Whether you're new to crypto or managing a growing portfolio, having the right information at the right time makes all the difference.
