Former UK Chancellor George Osborne, now an advisor to Coinbase, recently said for the Financial Times that the UK has already missed its first chance at crypto leadership; and now risks missing the second wave centred on stablecoins.

The Alarm Bell

Here’s what he actually said:

• “Far from being an early adopter, we have allowed ourselves to be left behind.” Osborne argued that Westminster let the crypto boom slip by while the US became an unexpected first mover.
  
  
• He warned, “we’re about to miss the second wave … stablecoins,” noting that regulators elsewhere (US, EU, Singapore, Hong Kong, Abu Dhabi) are already rolling out frameworks while the UK still deliberates.
  
  
• Osborne highlighted that around 99 percent of all stablecoins are pegged to the dollar—and under current UK rules, sterling-backed tokens don’t stand a chance.
  
  
• He didn’t mince words: “On crypto and stablecoins… we’re being completely left behind. It’s time to catch up.”

He also contrasted the UK’s restrictions—no Bitcoin ETFs, limited retail access, fiat transfer blocks from some banks—with the much more open environments in other jurisdictions. Regulation is now a competitive tool, and the UK is failing to use it.

Why This Matters to Fintech Founders

Strategic Blindspot

If the UK cedes stablecoin infrastructure to other regions, British fintechs will lose relevance and reach. Innovation will increasingly happen elsewhere—taking talent, capital, and customers with it.

Regulation Enables Innovation

The US recently passed the GENIUS Act, offering regulatory clarity around stablecoins. Meanwhile, Singapore, Abu Dhabi, and the EU already have frameworks in place. Where rules are clear, products launch faster.

Financial Influence Undermined

Without a strong framework for sterling-backed tokens, the UK’s financial system will lack credible digital alternatives. US dollar stablecoins already dominate. Unless something changes, the UK won’t just be a step behind—it’ll be structurally locked out.

Policy Inertia vs Startup Agility

The Bank of England continues to warn about risks to the “singleness of money,” and the FCA remains cautious. That caution is now becoming a drag. Founders who wait might wait too long.

What Fintech Founders Should Learn and Do

1. Engage Now

Don’t wait for regulation to be handed down. Get involved. Join forums, trade associations, or direct consultations. Founders who show up early shape the rules others have to follow.

2. Build for Flexibility

Launch your product in regions that already have working stablecoin rules, and design your stack so it can adapt later when UK regulation catches up.

3. Prep Retail Channels

Retail access is still restricted in the UK—but that won’t last forever. Build onboarding flows, education tools, and sterling-backed infrastructure now so you’re ready when the gate opens.

Key Takeaways for Fintech Startups

• The UK is falling behind—not due to failure, but due to inaction.
  
  
• Other jurisdictions have already moved. The window for leadership is closing.
  
  
• Founders can influence policy by engaging, not waiting.
  
  
• Products need to be agile, compliant across borders, and future-proofed for the UK’s eventual catch-up.
  
  

Your Fintech Story can help you develop cross-border product strategies, regulatory engagement plans, and investor-ready narratives. Let’s talk.