UK Initiates Fast-Tracking of Game-Changing Technologies but Doesn’t Include Crypto

• The U.K. has announced it will be streamlining the regulation process for a flurry of new technologies, including AI and the space industry.
• Crypto, which has faced increasingly strict regulatory rules in the U.K will not benefit from the new initiative.
• The U.K. Financial Conduct Authority rejected over 87% of crypto registration applications in its latest review.

Britain has announced the launch of a new Regulatory Innovation Office (RIO) to fast-track the approval of emerging technologies like AI and biotechnology.

The new office will help streamline previously cumbersome regulation hurdles for a flurry of new technology. But it appears the crypto industry has again been left out of the government’s focus.

Britain’s AI Fast Track

On Tuesday, the U.K. government said  the RIO would initially support engineering biology, the space industry, AI in healthcare and autonomous technology.

Peter Kyle, Britain’s science and technology minister, said the speed up of approvals and regulatory certainty would produce more jobs and a stronger economy.

“From breakthroughs that could help doctors diagnose illnesses earlier to satellite navigation for more accurate weather forecasting and getting emergency supplies to where they are needed, quickly and effectively, RIO will make sure U.K. companies are at the forefront of the next generation of technologies.”

In August, the government awarded companies developing AI to improve safety on construction sites and climate change £32 million in funding.

“AI will deliver real change for working people across the UK – not only growing our economy but improving our public services,” Minister for Digital Government and AI Feryal Clark said .

The UK’s ‘Pro Innovation’ Approach to AI

U.K. Prime Minister Keir Starmer previously suggested his government  would be moving away from the ‘pro innovation’ approach championed by previous leader Rishi Sunak.

However, the newly launched RIO may show that Labour is following the light touch route first pushed forward by the Conservatives.

By removing the red tape which previously stifled AI’s progress, the government is allowing for a larger wave of technology to come to market.

Labour said its decision to streamline new tech regulation and speed up approvals was to “help kickstart economic growth.” But it may also be to keep the U.K. from falling behind the AI race internationally.

In February, a report from the House of Lords Communications and Digital Committee warned  that the U.K. government risked missing out on the economic and social benefits of AI due to its narrow view surrounding AI safety.

The report stated that the U.K.’s narrow focus on AI safety could risk it losing its international influence and cause it to be dependent on foreign tech companies.

Crypto Left Out Again

The RIO’s launch notably failed to mention anything about cryptocurrencies, despite focusing on a wealth of emerging technologies.

In April 2022, the U.K. government announced plans to turn the country into a hub for cryptocurrency asset investment. However, the U.K.’s growing rising regulatory scrutiny on crypto is making it difficult for crypto firms to operate.

The U.K.’s Financial Conduct Authority (FCA) rejected over 87%  of crypto registration applications in its latest review.

Only four of the 35 applications reviewed in the fiscal year ending March 31 were approved, according to the regulator. Since the FCA took over the supervision of crypto firms under its anti-money laundering regulations, companies have been required to register with the agency.

The registration process has been described as overly burdensome by many firms, with companies facing long delays and stringent scrutiny.

This has led to the rejection of numerous applications, forcing companies to either cease operations or move to more crypto-friendly jurisdictions.