A coalition consisting of the UK’s top digital economy trade groups has written to Downing Street in the hope of pressuring the Government into providing more support for the country’s digital asset and blockchain ecosystems.

In an open letter to Varun Chandra, the Prime Minister’s business and investment special adviser at No.10, the UK Cryptoasset Business Council, along with techUK and Global Digital Finance, has urged for greater strategic focus and accelerated investment to ensure the UK remains competitive in the digital assets space. 

“Recent geopolitical events, namely the election of Donald Trump, have precipitated a global digital race to capture the economic and societal benefits of this new wave of technology,” reads the letter.

“Many jurisdictions, such as Singapore, UAE and Hong Kong, have implemented Government-led strategies to attract and onshore such businesses. It is vital that the UK is cognisant of these developments and remains flexible and proactive in its approach.

Taking inspiration from the US government’s recent appointment of a ‘crypto czar’, the coalition – which also counts the Payments Association, Digital Currencies Governance Group and Crypto Council for Innovation – has asked the UK Government to appoint a blockchain ‘special envoy’ to bridge the gap in digital asset policy between departments and foster public sector adoption. 

The group has also advocated for the creation of a ‘Government Action Plan’, similar to that rolled out for AI, to attract investment into UK digital asset ventures. 

The coalition said that this plan should include a ‘white-glove’ concierge service to attract high-potential firms, assist with international branding, and look to create competitive tax and investment opportunities.

Perhaps more importantly, the group also wants the government to take more advice from those in industry.

Writing that ‘effective policymaking depends on well-informed decision-makers’, the coalition has urged the government to close gaps in understanding and coordination through the creation of a formal industry-government-regulator forum to streamline blockchain policy in the UK.

That goal ties to the government’s ongoing effort to reform much of the UK’s regulatory infrastructure to drive economic growth, which has already seen plans for the abolition of the Payment Systems Regulator. 

“The UK is uniquely positioned to develop forward-thinking policies and regulations that enable value creation and fair distribution,” continues the letter.

“As a major global economy, the UK is large enough to have meaningful influence yet agile enough to implement well-calibrated regulations more swiftly than the EU. 

“With deep pools of talent, access to capital, world-class academic institutions, and sophisticated regulators, the UK provides an environment where digital assets and blockchain innovation can thrive.”

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The coalition is eager to build on the UK’s current position. Analysis in October from blockchain data company Chainalysis found that the UK is the biggest cryptocurrency economy in Central, Northern and Western Europe, ranking number twelve in a global crypto adoption index with $217 billion (£166.2 billion) received in crypto between July 2023 and June 2024. 

For their part, consumers interest in digital assets is also growing. Recent FCA research shows that the use of digital assets has risen at an unprecedented rate, with over seven million people in the UK now owning some form of cryptoasset at an average value of £1,842, up from £1,595 in 2022.