The United Kingdom risks losing Web3 and gaming talent to overseas jurisdictions unless it delivers a clearer and more enabling regulatory framework, according to a senior British lawmaker who warned that regulatory inertia could undermine the country’s ambitions to become a global technology hub.
What Happened
Speaking at a House of Lords roundtable on decentralized digital economies and UK growth, Lord Chris Holmes said the government must move faster to establish “the right regulatory landscape” to ensure Web3 innovators choose to build in the UK, particularly in the gaming sector, which he described as a major growth opportunity for the economy.
He further said the country was operating in a “globally competitive environment” and warned that unclear regulation risks pushing talent elsewhere.
“Imagine what we could do in terms of gamers, builders, developers and connectors if we had real meaningful practical digital inclusion,” he said, adding that the UK is “in a great position because we have a strong technology ecosystem, not just in London but in the four nations of the UK we have great creators and great potential.”
Lord Holmes pointed to gaming as a key pillar of future economic growth, arguing that Web3-enabled gaming could support job creation, skills development, and broader participation in the digital economy.
“We have a huge opportunity with gaming to make it an expanding part of our economy,” he said. “It’s such an area of growth. People can be empowered, can learn, are engaged and can be part of numerous companies. They can drive economic benefits and earn while they play.”
Why It Matters
However, he warned that failure to act would have direct economic consequences.
“The flip side is if we don’t get involved people disappear and a huge part of the economy is left behind,” Lord Holmes said.
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The comments come as the United Kingdom prepares to finalize a draft regulatory framework for crypto assets by early next year. At the same time, Prime Minister Sir Keir Starmer has repeatedly outlined plans to make the UK an AI and technology “superpower,” positioning the digital sector at the center of the government’s economic growth strategy.
Lord Holmes said those ambitions must be backed by legislation that enables innovation rather than slowing it down. “We have a government which talks incessantly about economic growth and it’s right to do that but if you’re going to talk about that you need to put legislation in place which is enabling and empowering that growth agenda,” he said.
He rejected the idea that regulation and innovation are mutually exclusive. “We need to smash the myth that you can either have innovation or regulation but can’t have both. That’s complete nonsense,” Lord Holmes said.
“The right sized regulation is good for all of us. Well-thought through principles-based regulation which does exactly what it says it should do and no more is the answer.”
Lord Holmes said that with the right approach, the UK could scale entire digital ecosystems rather than losing ground to international competitors. “We could be expanding whole ecosystems – it’s a globally competitive environment,” he said.
Lord Holmes, a nine-time Paralympic gold medallist, has served in the House of Lords for 12 years and has been closely involved in digital policy, including work on fintech, financial inclusion, and technology-related legislation.
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