Introduction
Cryptocurrencies are changing how people invest, save, and think about money. In the UK, interest in digital assets is growing fast. From new financial products to evolving tax rules, the British crypto market is facing big changes. This article brings you the most important UK crypto headlines and blockchain updates from the past week.
Why is this important now? The UK government and the Financial Conduct Authority (FCA) are working on new rules. These rules aim to balance safety and innovation. Big players like Coinbase are expanding in London. Meanwhile, experts warn that the UK risks falling behind other countries like the US, Singapore, and members of the EU.
This weekly roundup highlights the latest crypto news UK readers should know. We’ll explore key updates on regulation, taxation, and business growth. Whether you're an investor, developer, or just curious about crypto trends, this article is for you.
You’ll also learn about:
- The return of crypto-linked financial products for retail investors
- New hires in the FCA’s crypto team
- Public criticism from UK officials
- How the UK compares to other crypto-friendly nations
Stay with us as we dive into the top blockchain UK updates. This report is part of our ongoing coverage to help you stay informed in a fast-moving space.
Regulatory Shift: Retail Access to Crypto ETNs from 2025
The Financial Conduct Authority (FCA) recently announced a major change in its approach to crypto trading. Starting October 8, 2025, retail investors in the UK will be allowed to buy and sell crypto exchange-traded notes (cETNs). This ends a four-year ban that kept everyday investors out of these products.
cETNs are a type of investment tool that track the value of digital assets like Bitcoin or Ethereum. They are traded on stock exchanges but do not involve direct ownership of crypto. This allows investors to gain exposure to crypto without managing wallets or dealing with private keys.
Why the FCA Changed Its Mind
When the FCA introduced the ban in 2021, it argued that crypto was too risky and volatile for the average investor. But the market has matured since then. Other regions like the EU and the US now allow exchange-traded crypto products under clear rules. UK investors were at a disadvantage.
The FCA’s new stance aims to provide more choice for informed investors. However, it also warned that these products remain “high risk and not protected by the Financial Services Compensation Scheme (FSCS)”.
What It Means for Investors
- More investment options: Retail traders will be able to diversify into crypto without using overseas exchanges.
- Higher risk: cETNs can rise and fall quickly based on crypto prices. Investors must do their homework.
- No FSCS safety net: Losses will not be covered by the UK’s financial protection system.
Examples and Industry Response
Firms like 21Shares and ETC Group, already active in European markets, are expected to enter the UK with cETN offerings. Some UK-based platforms are preparing for product launches in early 2026.
Industry experts see this as a positive step. They believe it sends a signal that the UK is ready to support responsible crypto innovation.
| Region | Status of Retail Access to Crypto ETFs/ETNs |
|---|---|
| UK | Allowed from Oct 2025 |
| EU | Available (ETPs under MiCA) |
| USA | Bitcoin ETFs approved in 2024 |
| Singapore | Limited access with regulation |
Overall, this move brings the UK closer to major global markets and adds momentum to current crypto trends.
FCA Strengthens Its Crypto Division
The UK’s Financial Conduct Authority (FCA) is not just changing policies — it's also bringing in new talent. In a major move, the FCA hired Anurag Bajaj, a former executive at Standard Chartered, to lead parts of its digital assets and payments team. This shows the regulator’s plan to take crypto oversight seriously.
Bajaj brings years of experience in financial infrastructure, emerging markets, and risk management. His appointment signals the FCA’s focus on building a team that understands both innovation and control.
Why This Matters
Crypto firms in the UK have long criticized the lack of clarity and expertise within regulatory bodies. With this new hire, the FCA is sending a message: it wants to understand crypto from the inside, not just regulate it from the outside.
“If the UK wants to be a crypto hub, we need regulators who speak the same language as the innovators,” said one fintech leader in London.
Strategic Goals Behind the FCA’s Crypto Shift
- Develop smart regulation: Build balanced rules that support growth without allowing abuse.
- Improve communication: Increase dialogue between crypto firms and policymakers.
- Join the global race: Compete with regions like the EU, US, and UAE in attracting Web3 talent and investment.
FCA’s Recent Moves in Crypto
In addition to hiring, the FCA has launched new consultations and stricter advertising rules for crypto firms. These include requirements for risk warnings and clearer information for consumers. The regulator is also reviewing how centralized exchanges report customer assets and security practices.
Industry leaders believe this is a step toward smarter regulation. As more professionals with real-world crypto experience join the FCA, the chances of creating effective, fair rules increase.
For companies and developers, now is a good time to engage with the FCA’s sandbox programs and help shape future laws. This is not just policy — it’s about building the future of finance in the UK.
Criticism from George Osborne: Is the UK Falling Behind?
This week, former UK Chancellor George Osborne made headlines by warning that Britain is “falling behind in the global crypto race.” In an article for the Financial Times, Osborne said the UK risks losing its edge unless it acts faster to regulate and support blockchain technologies.
According to Osborne, countries like the United States, European Union, and Singapore are moving ahead with clear rules and friendly policies. Meanwhile, the UK is stuck in consultation mode — talking but not doing enough.
What Osborne Said
“The UK needs to catch up. We should be leading the world in safe, smart crypto regulation,” Osborne wrote. He called for quicker action on laws for stablecoins, crypto trading platforms, and blockchain startups.
He also suggested that the government should treat crypto and fintech as national priorities — much like green energy or digital infrastructure.
Why This Criticism Matters
- Osborne is influential: As a former Chancellor, his words carry weight in finance and politics.
- Public pressure is rising: Investors and businesses want clarity, not more delays.
- Talent is mobile: Blockchain developers and startups can move to friendlier countries.
Impact on the Government
The UK Treasury and FCA have so far responded with caution. They say more rules are coming and that a new legal framework is being built. But no clear timeline has been announced.
Osborne’s comments may add pressure on lawmakers to speed things up. His warning is part of a wider debate: can the UK still become a leader in blockchain innovation, or will it end up following others?
For now, the message is clear — talk must turn into action. Otherwise, the UK risks losing its place at the top of the crypto economy.
Coinbase UK: The Second Mover Advantage
While some see delays as a problem, others view them as an opportunity. Coinbase UK, one of the world’s largest crypto exchanges, believes the UK can benefit from being a “second mover.” That means learning from other markets before launching its own rules.
In a recent interview, Coinbase UK director Kathe Groves said the country can avoid early mistakes made in the US and Europe. “The UK can study what’s working elsewhere and build something better,” she explained.
Coinbase’s Growing Role in the UK
Coinbase is expanding its operations in London. The company is hiring, opening new offices, and working closely with regulators. Its goal is to make the UK its biggest international hub outside the US.
Groves pointed out that UK policymakers are open to working with the private sector. Coinbase is helping shape future rules by taking part in consultations and sandbox programs.
What the UK Can Learn from Others
- From the EU: The MiCA regulation offers a clear legal path for crypto firms, including licensing and stablecoin rules.
- From the US: The launch of Bitcoin ETFs and tough action by the SEC show both opportunity and risk.
Challenges and Opportunities
The second mover strategy works only if action follows soon. Coinbase and others warn that long delays will cause UK firms and talent to move elsewhere.
Still, the UK has advantages: a strong legal system, top universities, and a global financial hub in London. If the government acts wisely, the country could attract major blockchain projects and crypto investment.
Coinbase’s investment in the UK is a vote of confidence. It suggests that with the right framework, the UK can become a top destination for crypto innovation.
Upcoming HMRC Rules: Crypto Reporting in 2026
The UK government is preparing to tighten tax reporting rules for crypto. Starting in January 2026, new regulations from HMRC (His Majesty’s Revenue & Customs) will require crypto platforms to collect and share user information.
This change is part of the international Cryptoasset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD). It aims to stop tax evasion and bring transparency to crypto transactions.
What Will Be Required
Under the new rules, crypto exchanges and wallet providers will need to:
- Collect users’ full names and national ID numbers
- Track transactions and account balances
- Report data annually to HMRC and other tax authorities
This applies to both UK-based firms and foreign companies with UK users. HMRC says the goal is to make crypto tax rules “equal to those for traditional finance.”
Penalties for Non-Compliance
Crypto firms that fail to meet the new requirements may face fines. The penalty for missing data submissions will start at £300 per user, with additional daily fines for ongoing issues.
How to Prepare
- For users: Be ready to provide accurate ID and tax details. Keep records of your crypto trades.
- For platforms: Update systems to store and report customer data securely. Train staff in compliance.
These tax changes are a sign that crypto is becoming a mature part of the UK financial system. But they also increase the burden on companies, especially smaller startups. Many firms are now seeking legal advice and updating their terms of service ahead of the 2026 deadline.
Investors and crypto users should pay close attention. Transparency and accountability are the new rules of the game.
Global Comparison: Where the UK Stands in the Crypto Race
The UK has big ambitions to become a global leader in blockchain and digital assets. But how does it really compare to other major markets? While progress is being made, many experts say the UK is still behind the top crypto-friendly countries.
How Other Regions Are Moving Faster
- European Union: The EU has launched MiCA (Markets in Crypto-Assets), a complete legal framework for crypto businesses. It includes licensing, stablecoin rules, and consumer protection standards. MiCA gives firms a clear roadmap to operate across 27 countries.
- United States: The US approved its first spot Bitcoin ETFs in 2024, attracting billions in investment. Despite tough rules from the SEC, innovation continues at a high pace.
- Singapore and UAE: These countries offer quick licensing, tax benefits, and strong support for Web3 startups. They are popular destinations for blockchain developers and crypto funds.
UK’s Strengths and Gaps
Strengths: The UK has a strong legal system, access to global finance, and a growing base of crypto users. London remains one of the top fintech cities in the world.
Weaknesses: The main issue is speed. UK regulators often act cautiously, launching long consultations and slow reforms. This delay creates uncertainty for companies and investors.
Key Metrics at a Glance
| Country/Region | Regulatory Framework | Retail Access | Crypto ETF Approval |
|---|---|---|---|
| UK | In development (FCA & Treasury) | Allowed from 2025 (cETNs) | No |
| EU | MiCA (fully adopted) | Yes (ETPs) | No |
| USA | SEC enforcement-based | Yes | Yes |
| Singapore | Licensed model (MAS) | Limited | No |
If the UK wants to stay competitive, it must move faster. Legal clarity, tax fairness, and easier licensing are needed to attract top crypto talent and funding. Otherwise, it risks becoming just another follower in the global blockchain race.
Conclusion
This week’s UK crypto news shows a country on the edge of transformation. From lifting the retail ban on cETNs to preparing for new tax rules in 2026, the UK is slowly shifting from caution to action. The FCA is bringing in new talent. Big players like Coinbase are expanding their presence. Public figures such as George Osborne are calling for faster reforms.
Still, the path ahead is not guaranteed. The UK must move quickly if it wants to compete with regions like the EU, the US, and Asia. Strong regulation, clear laws, and industry partnerships are needed to turn potential into progress.
As investors and companies adapt, staying informed will be key. Regulatory shifts, new product launches, and cross-border changes will all affect how crypto is traded, taxed, and trusted in the UK.
For those looking to follow the latest crypto news UK and understand key blockchain UK updates, the future holds both promise and pressure.
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