Promise Amid Uncertainty: Industry Poll Reveals Mixed Reactions to UK’s Draft Crypto Regulation
As the United Kingdom takes significant strides toward creating a comprehensive regulatory framework for digital assets, a recent industry poll reveals a cautiously optimistic sentiment among financial and crypto professionals. While many applaud the UK’s progress and ambition, a large portion of the sector continues to express concerns over the lack of clarity and the challenges that lie ahead.
Conducted just hours after the UK government published its draft legislation aimed at establishing a full-fledged regulatory regime for crypto assets, the poll—commissioned by Clear Junction, a leading global provider of cross-border payment solutions for regulated financial institutions—collected insights from approximately 150 professionals within the crypto and broader financial services landscape.
A Pivotal Moment for UK Crypto Regulation
The survey was held during Clear Junction’s webinar titled “Is the UK Getting Crypto Regulation Right?”, which brought together key stakeholders from across the industry. Participants included executives from fintech startups, large financial institutions, regulatory bodies, and policy think tanks. The discussion centered on how the UK’s emerging crypto framework compares with established global approaches such as the European Union’s Markets in Crypto-Assets (MiCA) regulation.
Dima Kats, CEO and Founder of Clear Junction, addressed the audience with a clear message: “Regulators face the difficult task of designing future-proof rules in an ever-evolving space. While progress is being made, ongoing consultation and clarity are essential.”
The release of the draft legislation marks a milestone in the UK’s effort to position itself as a leading jurisdiction for digital asset innovation and regulation. However, according to the poll’s findings, the road to achieving that goal is far from smooth.
Optimism Tempered by Skepticism
One of the headline results from the poll reveals a divided industry: 50% of respondents believe the UK has the potential to become a global hub for crypto, contingent on how the new regulations are implemented. However, only 15% expressed full confidence that the country is currently on the right track.
By contrast, 28% of participants voiced skepticism, citing a significant trust gap between the intentions behind the policy and the actual needs of industry players. These respondents emphasized that while the government’s direction appears promising, its execution will be the determining factor in whether the UK can truly compete with jurisdictions like the EU, which has already enacted MiCA, providing much-needed regulatory certainty across member states.
Lack of Organisational Preparedness
Another critical insight from the survey was the general lack of readiness among organizations to comply with the incoming regulatory regime. Only 9% of firms indicated they were fully prepared to meet the anticipated requirements. Meanwhile:
- 34% are still in the early stages of assessment,
- 26% are in the process of building internal compliance plans, and
- 24% admitted they are unclear about what exactly will be required.
This level of uncertainty poses both a challenge and an opportunity. For regulators, it signals an urgent need to improve communication and offer more detailed guidance. For compliance solution providers, it represents a window to support firms in navigating the shifting regulatory environment.
Kats underscored this point: “The results show cautious optimism, but also a clear need for greater clarity. Crypto firms and traditional financial institutions alike are facing fast-evolving regulatory expectations. While regulation is welcome, its effectiveness will depend on how well it aligns with market realities and how clearly it’s communicated.”
Identifying the Key Regulatory Challenges
When asked to identify which elements of the upcoming changes will have the greatest impact on their businesses, responses were wide-ranging—indicating that much remains uncertain.
- 30% of respondents highlighted global frameworks, such as MiCA, as most relevant to their business strategies, underscoring how comprehensive regulation fosters confidence and engagement in the crypto space.
- 23% pointed to the forthcoming Financial Conduct Authority (FCA) licensing regime, expected to roll out between 2025 and 2026, as a potential game-changer that could shape the operational landscape for years to come.
- Surprisingly, only 9% referenced new safeguarding rules for client assets, suggesting either a lack of awareness or a perception that these rules are less urgent or impactful at this stage.
- Most tellingly, 39% of respondents admitted they were unsure which parts of the legislation would most affect their organizations—once again highlighting the need for greater regulatory guidance and clarity.
“This reinforces the disconnect between high-level policy goals and day-to-day operational realities for firms,” Kats said. “The demand for regulation is evident, but so is the need for better alignment with business concerns.”
Expert Commentary: Insights from Legal and Compliance Leaders
To provide a broader context and legal perspective, speakers from CMS UK and Europe, as well as Crystal Intelligence, joined the Clear Junction webinar panel.
Sam Robinson, a Partner at CMS and an expert in financial services regulation, praised the UK’s draft legislation, noting: “It forms the foundation for embedding crypto assets into the Financial Services and Markets Act. It’s a milestone moment that supports the UK’s ambition for growth and innovation.”
His colleague Clair Wermers, Partner at CMS Amsterdam, focused on regulatory harmony. “Europe is ahead of the UK right now with MiCA already in effect, but if the UK regime is similar, it will be easier for firms to operate across both jurisdictions. That kind of consistency would benefit the market greatly,” she said.
But the global landscape remains competitive, as Marina Khaustova, COO of Crystal Intelligence, pointed out. “Jurisdictional arbitrage is already happening,” she warned. “Startups are weighing up options – and while the UK is moving in the right direction, the cost and complexity of getting licensed here remain high. For many, markets like the US, Dubai, or parts of APAC are still more attractive.”
The Road Ahead: Innovation Anchored by Compliance
Clear Junction, which has consistently advocated for regulations that encourage innovation while upholding high standards, reiterated its commitment to supporting the crypto sector’s growth—provided it is grounded in robust compliance.
“We see crypto—especially stablecoins—as a huge opportunity,” Kats stated. “But only when backed by strong compliance. At Clear Junction, we believe that for any fintech business, the best long-term investment is in risk management. The UK’s announcement is a welcome step – it brings direction to a fast-moving sector. If regulation continues to evolve alongside the technology, the future is bright.”
As the UK attempts to balance its ambition to become a digital asset powerhouse with the necessity of regulatory control, the voices from this poll make one thing clear: the industry is watching closely. With collaboration, clear communication, and responsiveness to the needs of the market, the UK could indeed become a leading light in crypto regulation.
About Clear Junction
Clear Junction is a global provider of end-to-end regulated payment solutions, specializing in cross-border services for banks and financial institutions. The company is committed to bridging the gap between traditional finance and the emerging digital asset economy through compliant, secure, and scalable infrastructure.
For more information, visit Clear Junction’s website.
About Clear Junction
Clear Junction helps regulated financial institutions access and manage cross-border payments, with a focus on operational security backed by strong compliance and risk management practices. The Group is licensed and approved by regulators in the UK, EU, and Canada to provide payment and crypto services. Through its extensive bank network and proprietary technology, Clear Junction offers reliable payment infrastructure, correspondent account services, and access to major clearing networks. By filling the gaps left by traditional providers, Clear Junction enables businesses to operate efficiently and expand globally.
For more information, visit: https://clearjunction.com/.
