The slow implementation of U.K. crypto rules may push innovation to regions with faster regulatory development, like Europe and Asia.
The U.K. government’s progress on crypto regulation is too slow to keep up with the global race for digital assets, according to Andrew MacKenzie, CEO of Agant. The firm is developing a sterling-backed stablecoin, GBPA, but MacKenzie believes the delayed regulatory framework risks leaving the country behind. The crypto industry in the U.K. faces prolonged uncertainty as key legislation isn’t expected to take effect until 2027.
MacKenzie argued that businesses need clarity on the rules to stay competitive.
“Without faster implementation, the U.K. could lose its position as a leader in the digital asset sector,” he said.
He pointed to the growing pace of regulatory development in other regions like Europe, the Middle East, and Asia, which are advancing quickly.
Agant recently achieved registration with the Financial Conduct Authority (FCA), a milestone under the U.K.’s anti-money laundering regime. This selective process marks a significant step for the company as it prepares to launch its GBPA stablecoin. This stablecoin, backed 1:1 by pounds, aims to be more than a consumer token, serving as an institutional infrastructure for payments, settlements, and tokenized assets.
The company’s engagement with the Treasury, FCA, and the Bank of England has been constructive, though disagreements remain. MacKenzie noted that some proposed limits in the Bank of England’s stablecoin framework have sparked debate. However, he emphasized that regulators have shown a willingness to adjust rules when necessary.
MacKenzie expressed concerns that the slow pace of the U.K. crypto rules could harm the country’s competitiveness. He highlighted that businesses are primarily looking for clear regulations. The uncertainty around stablecoin legislation could drive innovation to other faster-moving regions, he warned.
Despite these challenges, Agant remains focused on its goal to launch the GBPA. The company believes in the potential for stablecoins to extend monetary sovereignty globally, particularly for the U.K. MacKenzie stressed that pound-backed stablecoins could enhance international demand for U.K. debt, rather than destabilize the financial system as critics suggest.
He also rejected the idea that stablecoins would drain bank deposits. Instead, MacKenzie views digital assets as competition that could encourage banks to innovate. He pointed out that many U.K. banks now recognize blockchain technology as a long-term strategic opportunity.
As the government works to finalize the regulatory framework, MacKenzie reiterated that the U.K. must accelerate the process. He remains hopeful that once implemented, the regulations will position the country as a key player in the global digital asset economy.
