Former UK Chancellor George Osborne has issued a stinging criticism of his nation’s crypto regulatory approach, warning that Britain may have permanently fallen behind global leaders. Eleven years after pioneering crypto infrastructure as finance minister, Osborne now believes the UK risks being “completely left behind” in the digital asset revolution.

The Opportunity Window Has Closed

In a Monday op-ed for The Financial Times, Osborne detailed how the UK’s indecision and restrictive policies have squandered a critical window for innovation:

“A giant window of opportunity for Britain existed while US authorities remained crypto sceptics. That window has now closed.”

The former chancellor specifically cited the nation’s “years of indecision, restrictive policies, and lack of competitive frameworks” as key factors in this alarming setback. Critically, he targeted the UK’s substantial lag in adopting stablecoins, particularly those backed by the pound sterling.

The Pound’s Stability Problem

Osborne’s analysis highlights a concerning trend: the overwhelming dominance of dollar-backed stablecoins in the global market (representing 98%+ of all fiat-backed stablecoins by 2025) with minimal transaction costs, contrasting sharply with Britain’s position:

“For sterling stablecoins, you’ll pay a fee. For dollar stablecoins, there are minimal transaction costs, and you may earn a return. The market speaks for itself.”

This strategic disadvantage effectively sidelines the pound in the emerging stablecoin landscape, according to Osborne, who serves on Coinbase’s global advisory council. His concerns are particularly timely as institutional adoption of tokenized finance reaches record heights.

A Nation Rebound or Reputation Repair?

Despite recent regulatory gestures—most notably the Financial Conduct Authority’s (FCA) lifting of its five-year ban on crypto-linked exchange-traded notes for retail investors—Osborne remains deeply skeptical of the UK’s progress.

The FCA’s approach since mid-2025 has reportedly been cautious, with just six firms licensed in the current period while 87% of applications have been rejected, primarily citing anti-money laundering concerns (more than twice the traditional finance rejection rate).

International Peer Pressure

The former chancellor’s critique arrives as major crypto players increasingly highlight the UK’s regulatory shortcomings:

• Osborne himself has criticized the Bank of England’s refusal to authorize sterling-backed stablecoins
• Coinsbase CEO Brian Armstrong recently released a provocative UK ad titled “Everything is Fine” which, while banned as “arrogant and misleading” by critics, sparked debates about the UK’s regulatory environment

Osborne’s concerns about the UK’s crypto trajectory come amidst broader government ambitions for a digital economy, but they highlight what many in the industry perceive as fundamental strategic missteps that risk establishing a long-term competitive disadvantage.