Strict crypto regulations in the United Kingdom are prompting institutional clients to seek offshore routes for digital asset exposure, according to Jason Keogh.

Speaking at the iFX Expo International 2025, Keogh noted that many UK-based firms are now facing Fusion Capital through entities registered in more flexible jurisdictions.

Regulations in the UK

“Because of the situation with the uh regulation in UK which is tough, a lot of the institutional clients are going to offshore entities to facilitate their crypto to so when they face us they can face us via the EU, via St Lucia, Canada, an a multitude of different regulations and jurisdictions which is very accommodating to them.”

While Fusion Capital itself partners with FCA-regulated custodian Archax and provides institutional-only digital asset liquidity, demand is increasingly coming from brokers and asset managers operating through non-UK regulatory frameworks.

Outlook on MiCA Regulations

Keogh added that clearer and more accommodating rules will be key to unlocking institutional adoption domestically. He pointed to the upcoming MiCA regulation in Europe as a potential turning point.

“Whether you like it or not, and it doesn’t matter what asset class, you have to have regulation, and it has to be good regulation. And MiCA is going to come in and it’s going to take the crypto world to the next level.”

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“And that’s good because that will give clients comfort, higher regulation, so I think until that’s fully implemented, we’re kind of on hold for the minute. But soon as that comes into play, I think you’ll see a really big uh uptake going forward.”

Regulation and Risk Aversion Push Startups Abroad

A recent report by CNBC supports Keogh’s argument that the UK, once seen as a launchpad for fintech innovation, now faces growing concern from crypto and startup leaders who warn that slow reforms and tough regulatory hurdles are pushing companies to more welcoming hubs like Singapore, the UAE, and the U.S.

Entrepreneurs and executives in the UK fintech and crypto sectors say a mix of red tape, limited access to capital, and post-Brexit talent issues are dimming the country’s appeal for emerging companies. While global peers race ahead with targeted reforms, UK regulators remain cautious, which many say is stalling growth and innovation.

Most recently, the UK’s FCA proposed new amendments to regulations for alternative asset managers. According to the watchdog, the reforms are part of a broader push to streamline market rules, making it easier for firms to operate internationally.

However, the tough regulatory environment in the UK, much of which relates to EU legislation, is perceived as a barrier to the growth and agility of UK firms.

This article was written by Jared Kirui at www.financemagnates.com.Retail FXRead More

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