The United Kingdom’s ambition to become a leading global hub for digital assets risks losing momentum if regulatory timelines are not accelerated, according to Andrew MacKenzie, chief executive of sterling stablecoin developer Agant. He argues that while policymakers are moving in the right direction, the pace of implementation could undermine competitiveness as other jurisdictions advance faster.
The UK government has repeatedly signaled its intention to position London as a center for crypto innovation and tokenized finance. However, comprehensive legislation governing stablecoins and broader crypto activity is not expected to be fully approved until later this year, with implementation projected for 2027. MacKenzie believes that extended timelines create uncertainty for businesses seeking clarity before committing capital and infrastructure to the UK market.
Agant recently secured registration with the Financial Conduct Authority under anti money laundering rules, a milestone widely regarded as difficult to achieve. The FCA approval allows the firm to operate certain cryptoasset activities in the UK and represents a key step toward launching its pound backed stablecoin, GBPA. The company has positioned the token as institutional infrastructure for payments, settlement and tokenized assets rather than a retail focused product.
MacKenzie described engagement with the Treasury, the FCA and the Bank of England as constructive but iterative. He acknowledged that elements of the proposed stablecoin framework remain subject to debate, particularly around limits and structural safeguards. At the same time, he noted that regulators have shown willingness to consider adjustments where justified by market feedback.
In his view, well designed stablecoins can strengthen rather than weaken monetary sovereignty. By enabling global distribution of sterling denominated digital instruments, pound backed tokens could expand international exposure to UK currency and government debt markets. MacKenzie argues that this dynamic may support funding efficiency and broaden the reach of domestic financial infrastructure.
Concerns from commercial banks that stablecoins could divert deposits and reduce lending capacity are, in his assessment, overstated. He contends that increased competition may encourage banks to modernize services and improve efficiency rather than erode credit availability. Stablecoins, he suggests, introduce alternative rails for settlement and liquidity management without necessarily displacing traditional finance.
MacKenzie also observed a shift in attitude among UK banks. Discussions around blockchain adoption have moved from experimental teams to executive leadership, reflecting a recognition that programmable settlement, cross border interoperability and tokenized assets may form part of a long term transition. He characterized the shift as a multi decade evolution similar to the move toward digital banking.
As jurisdictions in Europe, the Middle East and Asia accelerate digital asset frameworks, the timing of UK regulatory rollout may prove decisive in determining whether London can translate ambition into sustained leadership in crypto and tokenized finance.
