Citi UK CEO Urges Easing Crypto Rules to Keep London Competitive

Tiina Lee, chief executive of Citigroup UK, asked regulators to change rules that limit banks' crypto activities at TheCityUK's annual conference in London.

Lee said current restrictions prevent banks from joining the growing digital assets market. She argued that banks have strong risk management systems and compliance knowledge that could protect investors and provide needed services such as custody and capital.

Risks to London's Financial Leadership

The Citigroup head warned that impractical restrictions could push crypto activity to other countries, hurting London's goals as a global financial center after Brexit. She called for cooperation between banks and regulators to create rules that balance innovation, consumer protection, and financial stability.

The push for regulatory changes comes as banks seek more involvement in digital assets under existing oversight frameworks. The Financial Conduct Authority (FCA) announced on June 6, 2025 that it is proposing to lift its ban on retail investors purchasing crypto exchange-traded notes, subject to consultation.

Draft legislation from April would require exchanges and dealers to follow mandatory regulation by the end of 2025. However, only four crypto firms received FCA anti-money-laundering approval in the past year. Strict marketing rules forced several platforms to stop UK operations.

Industry leaders noted banks cannot expand crypto offerings until regulatory frameworks are simplified and harmonized internationally.

Global Regulatory Landscape and Outlook

Current uncertainty in the UK contrasts with recent developments in the United States. U.S. banking regulators withdrew guidance documents in April that warned against crypto activities. Major American banks are now discussing pilot programs and limited crypto trading while waiting for clearer capital requirement rules.

Citi's Future of Finance think tank released forecasts in May showing stablecoins could grow from the current $240 billion market to $1.6 trillion by 2030 under supportive regulation. In an optimistic scenario, the market could reach $3.7 trillion.

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