UK Crypto Hub Ambitions Stymied by Regulatory Implementation Gap

UK crypto regulation has been hindered by an execution gap between policy ambitions and real-world implementation, according to Isadora Arredondo, Hedera's Vice President of Global Policy. Speaking from her experience at the Financial Conduct Authority (FCA), she said that many crypto firms have criticized the FCA for slow approvals and regulatory hurdles.

Arredondo attributed much of this delay to competing priorities rather than hostility toward digital assets. During her tenure at the FCA between 2018 and 2021, the regulator was heavily focused on Brexit-related rule changes and responding to the COVID-19 pandemic's economic disruption.

The FCA has since adopted a two-track approach to crypto regulation, with large financial institutions benefiting from initiatives such as the Digital Securities Sandbox. However, startups and retail-focused crypto businesses often face lengthy authorization processes and multiple regulatory reviews.