- Kraken’s Bivu Das says Britain is no longer leading fintech innovation.
- But new crypto laws can fix that, he told DL News.
- The industry is more vocally demanding crypto legislation.
Bivu Das says the UK is no longer the leader of financial innovation.
Speaking at the sidelines of the Zebu Live conference in London, Kraken’s UK general manager told DL News that the British government’s support of open banking and neobanks made the country a hotbed for fintech innovation.
Now the government’s sluggishness to regulate the crypto industry has pulled it behind other regions like the US and the EU, he argued.
“At least they’re on the road, but we’re sitting there on the hard shoulder, waiting to see if the other two crashes before deciding what to do,” Das said.
Sixth-largest economy
His comments echo a growing chorus of pro-industry voices who lament Westminster’s failure to sign crypto rules into law.
They’ve hosted press breakfasts, put in ads, spoken in the House of Lords, penned opinion pieces, and launched petitions, pleading with the government to regulate the industry.
At risk is the industry’s access to the sixth biggest economy in the world with a GDP just shy of $4 trillion.
The argument follows that, without laws, the industry will be unable to properly provide financial opportunities to UK customers.
“There is still not enough recognition or understanding of the potential or, actually, the fact that crypto is going to be the backbone of the next wave of financial services,” Das told DL News.
False starts
A tech scene veteran with two decades of experience working at Deloitte and challenger bank Starling Bank, Das stepped into his role at Kraken in 2023.
Since then, he says he’s seen former Prime Minister Rishi Sunak’s pledge to transform Britain into a crypto hub grind to a halt on the back of a snap election that ousted the Conservative government.
While the new Labour government is cognisant of the industry, crypto has not been its priority, Das said. Now, however, he is seeing some momentum on the back of the US signing a stablecoin bill into law.
“It’s now coming back into the conversation with a bit more urgency,” Das said.
No to FTX
In April, finance minister Rachel Reeves said that the UK is already actively working towards a regulatory framework for the industry.
Until those rules become a reality, however, the industry remains largely unregulated.
The Financial Conduct Authority, the primary regulator overseeing crypto, has been criticised for its slow pace in creating guidelines for the industry.
Colin Payne, head of innovation at the FCA, hit back against the notion that the UK has lost its crown.
“We are not going to apologise for being cautious,” Payne said on a panel at Zebu Live.
He reminded the audience that the FCA was one of the regulators that said no to FTX, the crypto exchange that collapsed in 2022 in a flurry of fraud allegations.
“That saved us a lot of heartache,” Payne said.
Eric Johansson is DL News’ managing editor. Got a tip? Email at eric@dlnews.com
