The United Kingdom's ambition to become a global digital asset hub is being undermined by the slow pace of its crypto regulatory framework, according to Andrew MacKenzie, CEO of sterling stablecoin developer Agant. While the direction is positive, MacKenzie warns that the timeline for comprehensive legislation is too protracted to support the government's goal of remaining globally competitive.
The government has pledged to position London as a crypto center, but the comprehensive legislation governing stablecoins and wider crypto activity is not expected to be approved by parliament until later this year and won't come into force until 2027. This creates a significant competitive disadvantage, especially when compared to jurisdictions like the European Union, where the Markets in Crypto-Assets (MiCA) framework has been operational since June 2024.
"I think the most damaging thing today has been the time that it’s taken to get to where we are just now," MacKenzie said in an interview at Consensus Hong Kong. "People just want clarity ... If there’s anything I’d like to see from the regulators, it’s just an acceleration in the pace with which we can do things."
Agant, which is based in London, recently achieved a key regulatory milestone by registering with the Financial Conduct Authority (FCA) under money laundering regulations—a process known for being stringent and slow. This registration is a prerequisite for operating certain cryptoasset activities in the U.K. The company plans to issue a fully backed pound sterling stablecoin called GBPA, positioned as infrastructure for institutional payments, settlement, and tokenized assets.
MacKenzie described engagement with the Treasury, the FCA, and the Bank of England as constructive but iterative. He noted that while there are aspects of the proposed regulations, such as limits within the Bank of England’s stablecoin framework, that the company opposes, regulators appear willing to listen and implement changes with proper justification.
The CEO also challenged the view held by some central banks and commercial banks that stablecoins pose a threat to financial stability and sovereignty. He argued that properly structured stablecoins can actually extend monetary sovereignty by allowing for the global distribution of digital pounds, increasing exposure to sterling-denominated assets and potentially lowering funding costs for the central bank. For commercial banks, he sees stablecoins as a driver for increased competition rather than a diminishment of credit availability.
Despite the regulatory delays, MacKenzie observed a shift in attitude among UK banks, with conversations about cryptocurrency and blockchain technology escalating to the C-suite level. He described an "exponential acceleration" in banks' adoption of the technology, recognizing efficiencies in programmable reconciliation and instant settlement, though he acknowledged the transition may take decades.
The overarching message is clear: if the UK intends to compete with faster-moving jurisdictions in Europe, the Middle East, and Asia, the speed of regulatory implementation will be a critical determining factor in its success.
