UK Parliament's Lack of Understanding of Cryptocurrency — FMLS:25 In-Depth Reflection and Insights

At the London Financial Summit (FMLS:25), former UK parliamentarian and founder of the UK-US Crypto Alliance Dr. Lisa Cameron highlighted an awkward reality: the UK Parliament’s lag in cryptocurrency policy far exceeds expectations. She emphasized that if legislative bodies do not accelerate the development of regulatory frameworks, the UK’s position as a crypto hub will face serious threats.

This observation stems from Cameron’s own experience. As the first clinical psychologist to enter Westminster, she became involved in this field in 2021 after a constituent sought her help—having suffered significant losses in a crypto scam and seeking compensation. This incident prompted her to investigate the current state of UK policies in the digital asset sector.

The Huge Gap Between Parliament and Public Awareness

Cameron’s findings were shocking. In 2021, debates or mentions of cryptocurrencies in the UK House of Commons were almost zero—completely untraceable in records at the time. However, according to data from the Financial Conduct Authority (FCA), nearly 4 million UK citizens were involved in cryptocurrency trading or related industries during the same period.

The knowledge gap within Parliament contrasted sharply with the public’s actual participation. Public demand could not be addressed through parliamentary channels, and many industry businesses faced a policy vacuum, forcing them to manage risks independently, sometimes outsourcing certain functions to third-party agencies to cope with the uncertain regulatory environment. This situation is clearly unsustainable.

From Zero to Two Hundred: Rapid Evolution of Parliamentary Awareness

To bridge this knowledge gap, Cameron founded the All-Party Parliamentary Group (APPG) on Cryptocurrency and Digital Assets in 2021. Over four years, the primary task of this group has been to provide basic education to MPs and Lords.

Early efforts were extremely challenging. Cameron recalls the scene at the time: representatives from various companies flocked to Parliament to meet with MPs, but both sides had to undergo a “difficult learning” process. Some unregulated participants even attempted to exert pressure within Parliament, further highlighting the lack of formal guidance within the industry.

From 2021 to 2022, the APPG intensified training efforts, inviting industry experts to interpret terminology and help MPs understand the technical details involved. By 2023-2024, research by consulting firm Greengage showed significant progress: mentions of cryptocurrencies and digital assets in Parliament increased from zero in 2021 to over 200 times. This shift was largely driven by the systematic educational work of the APPG.

Rising Policy Priorities and International Competitive Pressure

As parliamentary discussions increased, questions directed at City Minister Andrew Griffith also grew. This compelled various government departments to establish relevant policy positions and technical understanding. Cryptocurrency gradually rose from an overlooked topic to a key issue on the political agenda. At that time, Prime Minister Rishi Sunak even explicitly stated his desire for the UK to become a crypto center.

However, Cameron warned that the UK cannot view regulatory decisions as isolated measures. Jurisdictions like Dubai’s Virtual Assets Regulatory Authority (VARA) and Singapore have demonstrated that combining innovation with clear regulatory frameworks can attract companies. These regions’ balanced compliance approaches have already triggered a “migration wave” of businesses moving to these more attractive regulatory environments.

Cameron recently visited Singapore and Zug, Switzerland’s “Crypto Valley,” to understand how these regions are building their regulatory processes. She found that international competition poses a real threat to the UK’s standing.

UK-US Sandbox and “Light-Touch” Regulatory Framework

After leaving Parliament, Cameron became Chair of the UK-US Crypto Alliance. In this role, she led parliamentary members and Lords to visit Washington, D.C., to consult with the U.S. Crypto Task Force, and discussed a joint sandbox initiative with Committee Member Pearce and Chair Atkins—a bilateral innovation testing platform currently underway.

Looking ahead, Cameron suggests the UK adopt a “light-touch” regulatory framework that allows innovators to operate within clearly defined guardrails. This approach should prioritize consumer protection but also avoid stifling entrepreneurship, investment, and growth. The UK needs to observe legislative efforts like the U.S. GENIUS Act and Clarity Act, while developing its own rules for promoting crypto financial services tailored to its national context.

Industry Needs Direct Engagement, Not Just Outsourcing Responsibility

A key call from Cameron at the summit was that the industry cannot outsource all policy engagement work to lobbying groups. She asked how many attendees had directly communicated with their MPs about digital assets—only a few raised their hands.

She urged companies to actively participate in cross-party groups on crypto, blockchain, digital currencies, and fintech, leveraging constituency open days to explain to policymakers how these sectors create jobs, foster skills, and drive future growth. Policy progress cannot rely solely on a few advocates; it requires participation from the entire ecosystem.

Intergenerational Insights from the Children’s Parliament

One of the most striking examples came from Cameron’s interaction with the UK Children’s Parliament. This body, composed of children aged 7 to 15 representing constituencies across the UK, raised concerns about the digital economy. This meeting reinforced Cameron’s belief that Parliament has a responsibility to design regulatory and educational systems that create conditions for future jobs, rather than simply copying traditional career paths like doctors or lawyers.

The younger generation is already thinking about blockchain, Web3, and digital assets. If Parliament continues to lag behind this wave of awareness, the UK will miss the opportunity to nurture the next generation of talent.

The Window of Opportunity Is Closing

Cameron concluded with a warning: the UK has a “window of opportunity” to shape on-chain innovation, but this window is rapidly closing. Other international centers are accelerating their efforts, and the UK must catch up.

She plans to continue visiting legislators in Spain, the EU, Italy, Germany, Singapore, and the U.S. over the next year to provide a clearer international benchmark for Westminster—the UK’s true position in the global crypto ecosystem and what reforms are needed to stay competitive.

Her final appeal to FMLS attendees was straightforward: if innovators want to build a “Made in the UK” future, they must help educate policymakers who decide whether these companies can stay in the UK.