Interviews and a survey of crypto founders reveal that unfriendly regulation and higher taxes are driving many to move from Britain to jurisdictions like the UAE.
A growing number of UK‑based crypto entrepreneurs are relocating abroad, citing regulatory friction and tax disadvantages as primary drivers. The trend is highlighted by the recent departure of Moongate, a London‑founded crypto startup, which moved to the Ras Al Khaimah Digital Assets Oasis (RAK DAO) in the United Arab Emirates after its founder, Praneet Sinha, found the UK environment less conducive to converting crypto revenue into fiat for operational costs.
Sinha explained to CryptoSlate that the RAK DAO free zone offered a more crypto‑friendly regulatory framework and tax advantages, especially around the conversion of crypto fees into fiat for salaries and expenses. The startup, established in London in 2022, relocated to Abu Dhabi in August 2024 and formally dissolved its UK entity in July 2025. MoonPay later acquired Moongate in June 2026.
Superteam UK’s “Brain Drain Wall” collected 576 voluntary submissions from crypto founders and executives between 16 July and 21 October 2026. Of the respondents, 32% indicated plans to leave the UK, while 7% had already done so. Among the 226 founders who are leaving or have left, the top reasons were quality of life (25.2%), tax environment (24.3%), job opportunities (20.4%) and access to capital (12.4%). Tax and capital considerations together accounted for 36.7% of the responses, surpassing any single factor.
Official migration data from the Office for National Statistics (ONS) shows a net loss of 507,000 British nationals between 2021 and 2025, with a provisional 136,000 leaving in 2025 alone. While the ONS does not break down the figures by industry, the anecdotal evidence from crypto founders suggests that regulatory and fiscal policies are influencing the sector’s talent pool. The lack of granular data has limited governmental urgency, as neither the UK government nor the Migration Observatory has classified the trend as a crisis.
Analysts will monitor whether the UK introduces clearer crypto‑specific regulations or tax incentives that could stem the outflow of founders. Future updates from the Brain Drain Wall and any policy shifts by the Treasury or the Financial Conduct Authority will be key indicators of whether the UK can retain its emerging crypto ecosystem.
The founder cited a more crypto‑friendly regulatory environment and tax advantages in the RAK DAO free zone, especially for converting crypto revenue into fiat.
According to the Brain Drain Wall survey, quality of life, tax environment, job opportunities and access to capital were the top factors, with tax and capital together accounting for 36.7% of responses.
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