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The U.K.’s long-promised push to become a world-leading digital asset hub is running into a familiar obstacle: time. While policymakers insist progress is being made, industry leaders argue UK crypto rules are advancing at a pace that threatens the country’s competitiveness in an increasingly fast-moving global market.
That concern was voiced sharply by Andrew MacKenzie, chief executive of sterling stablecoin issuer Agant, who said the regulatory direction is broadly correct but unfolding far too slowly. MacKenzie warned that UK crypto rules are not yet aligned with the government’s ambition to turn London into a global center for digital assets.
Successive U.K. administrations have pledged to make Britain a magnet for crypto innovation. However, comprehensive legislation covering stablecoins and broader crypto activity is not expected to be finalized by Parliament until later this year, with full implementation unlikely before 2027.
For MacKenzie, that delay highlights a widening gap between political ambition and regulatory execution, leaving UK crypto rules lagging behind faster-moving jurisdictions.
“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. “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.”
The slow evolution of UK crypto rules is especially evident in the Financial Conduct Authority’s registration process. Agant recently became one of a limited number of cryptoasset businesses approved under the FCA’s anti-money laundering regime, a requirement for operating certain crypto services in the U.K. The process is widely viewed as one of the toughest globally, praised for rigor but criticized for its length.
For Agant, the approval is less about retail expansion and more about institutional credibility. The firm plans to issue GBPA, a fully backed pound sterling stablecoin designed for payments infrastructure, settlement, and tokenized financial markets. In that context, UK crypto rules are not just compliance hurdles but signals of trust to banks, asset managers, and payment providers.
MacKenzie said Agant maintains ongoing dialogue with HM Treasury, the FCA, and the Bank of England, describing the engagement as constructive but iterative. Still, he remains vocal about areas of concern, including proposed limits in the central bank’s stablecoin framework, which he believes could restrict innovation if applied too conservatively.
“The most promising aspect when we speak to regulators is the fact that they’re willing to implement changes if there’s true justification there,” he said, suggesting UK crypto rules could evolve more dynamically if the process were accelerated.
Debate over stablecoins has intensified globally, with some central banks and commercial lenders arguing they pose risks to financial stability. MacKenzie rejects that view, framing stablecoins as tools that can extend, rather than weaken, monetary sovereignty when governed by sensible UK crypto rules.
“When you see the penny drop with central bankers, you realize this is actually an amazing way for them to export sovereign debt,” he said.
By issuing a pound-backed digital token, companies like Agant could distribute sterling-denominated assets worldwide, potentially lowering funding costs and increasing demand for the pound.
Rather than undermining central banks, he argued, stablecoins designed within robust UK crypto rules could enhance the global reach of national currencies. “We can go and sell pounds globally,” MacKenzie said. “The cost of carry for the central bank is just reduced somewhat.”
Commercial banks often raise a different concern: that deposits could migrate from traditional accounts into stablecoins, shrinking their lending capacity. MacKenzie dismissed that argument as outdated. In his view, UK crypto rules should encourage competition that forces banks to modernize, not protect incumbents from technological change.
“I don’t think it is a valid argument,” he said. “What it really brings to the table is that banks need to become more competitive.”
According to MacKenzie, attitudes inside U.K. banks are already shifting. What was once a niche technology discussion has moved firmly into executive boardrooms. “It’s now a C-suite conversation,” he said, adding that banks increasingly see blockchain-based settlement, reconciliation, and cross-border payments as efficiency gains rather than threats.
That momentum could clash with the slow pace of UK crypto rules. While bankers recognize the long-term nature of transformation—MacKenzie estimates a 30-year transition, similar to the digitization of banking—the competitive landscape is changing quickly. Jurisdictions in Europe, the Middle East, and Asia are rolling out clearer frameworks, threatening to outpace Britain if regulatory timelines slip further.
In that context, UK crypto rules may become the decisive factor in whether the country attracts or repels the next generation of financial infrastructure builders. MacKenzie believes the framework itself is broadly sound; the problem is timing.
Ultimately, the question is not whether Britain can design smart regulation, but whether it can move fast enough. As global competition intensifies, UK crypto rules may determine whether London fulfills its ambition as a digital asset hub—or watches that future develop elsewhere.
