A consortium of British trade bodies has urged No. 10 to focus more on digital assets and blockchain to boost investment, growth, and jobs in the UK.

In a letter addressed to Varun Chandra, the prime minister’s special advisor on business & investment, the Crypto Council for Innovation, techUK, Global Digital Finance, The Payments Association, the UK Cryptoasset Business Council, and the Digital Currencies Governance Group called on the government to roll out a dedicated action plan similar to the one it launched for AI technologies.

The trade associations said that the election of Donald Trump has triggered a “global digital race” to capture the benefits of these technologies, with many countries – including Singapore, the UAE, and Hong Hong – having implemented government-led strategies to attract and onshore businesses specialising in the technology.

Amidst this competition, the letter said that it is vital that the UK is “cognisant of these developments" and remains "flexible and proactive in its approach”.

"The UK’s positive commitment to a US-UK economic trade deal focused on technological cooperation present a significant opportunity to mirror the United States ambition in fostering leadership in blockchain, digital assets, and other emerging financial technologies," continued the letter.

The letter also called on the government to make sure that the UK remains a "hub for innovation" by following the lead of the US in appointing a blockchain special envoy.

It also said that lawmakers should acknowledge the synergy between blockchain, quantum computing and AI, adding that the integration of these technologies will "profoundly influence the future landscape of tech, finance and defence".

The organisations warned that "gaps remain" in the government's understanding and coordination across departments, suggesting it should create a high-level industry-government-regulator engagement forum.

The crypto and tech trade bodies said that the UK's legal framework and judiciary are another vital factor.

They went on to say that the Law Commission’s recent findings on digital assets shows that this jurisdiction is willing to use the British legal system by creating a third category of property.

The comments come after the Commission published a draft Bill on digital assets as personal property on 30 July 2024.

"This, in turn, shores up the status of securities tokens, cryptocurrencies, reconstruction of collateral agreements, carbon credits, etc, which can unlock incredible investment opportunities," said the letter. "If our legal industry can bend to future proof our economy, now is the time to utilise both the technology and our common law system for the good of the country at large."

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