UK industry groups have called on the government to integrate digital assets into the UK-US Tech Bridge agreement, which could significantly impact the country's global competitiveness in digital finance.
Digital Assets as a Strategic Priority
UK organizations, including the Cryptoasset Business Council and UK Finance, urged the British government to include digital assets in the UK-US Tech Bridge. This move aims to strengthen the country's role in global digital finance, highlighting the importance of blockchain, stablecoins, and tokenization.
Financial and Political Implications
As global venture capital is favoring the US, the lack of digital assets in trade frameworks could lead to capital and innovation flight. Excluding digital assets from trade agreements risks reducing opportunities for UK crypto firms and may lead to trading volumes and liquidity migrating abroad.
Prospects for UK Leadership in Digital Finance
To establish leadership in digital finance, the UK must provide regulatory clarity. Historically, regulatory uncertainty has stalled ambitions in the country, while nations like Singapore and the UAE have made strides with similar initiatives. "The UK can and should be at the forefront of responsible innovation," said Matt Green, Head of Blockchain and Digital Assets at Lawrence Stephens.
The call from industry groups for the inclusion of digital assets in the UK-US Tech Bridge underscores the need for a clear strategy to maintain the UK’s competitiveness in the global digital finance arena.
