The UK’s crypto regulatory framework is moving in the right direction, but not fast enough to support the country’s ambitions to become a global digital asset hub, Andrew MacKenzie, CEO of sterling stablecoin developer Agant, told CoinDesk.
The government has repeatedly promised to position London as a center for global crypto and digital asset activity. However, comprehensive legislation regulating stablecoins and broader crypto activity is not expected to be approved by parliament until later this year and will not come into force until 2027.
MacKenzie said this timeline contradicts the government’s aim to remain globally competitive within the industry.
“I think the most damaging thing today has been the time it’s taken to get to where we are right now,” MacKenzie said in an interview with 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 at which we can do things.”
The London-based company recently joined the small group of cryptoasset firms registered with the Financial Conduct Authority (FCA) under anti-money laundering regulations, an approval process widely considered to be one of the most stringent globally. FCA registration is a prerequisite for conducting certain cryptoasset activities in the UK, and the process has gained a reputation for being both demanding and slow.
A hard-won regulatory milestone
For Agant, which plans to issue a fully backed pound sterling stablecoin called GBPA, the registration signals institutional intent rather than a retail crypto push. The company has positioned the token as infrastructure for institutional payments, settlement and tokenized assets.
The firm maintains active dialogues with the Treasury, the FCA and the Bank of England, MacKenzie said, describing engagement as constructive but iterative.
“There are certain aspects that we don’t like and we’re very vocal about them,” he said, referring in part to proposed limits within the Bank of England’s stablecoin framework.
Still, he said, regulators are listening.
“The most promising aspect when we talk to regulators is the fact that they are willing to implement changes if there is a real rationale there.”
Stablecoins as a tool, not a threat
When asked if he saw the opposition of European central banks and US private banks to stablecoins as a problem for the future of his project, MacKenzie dismissed their concerns about financial stability and unfair competition, saying that stablecoins can strengthen sovereign monetary reach.
“When you see the central bankers’ ears drop, you realize that this is actually a great way for them to export government debt,” he said. By issuing a pound-pegged stablecoin, firms such as Agant could distribute digital pounds globally, increasing exposure to sterling assets and potentially lowering funding costs. “We can go and sell pounds globally,” he said. “The cost of transportation for the central bank is just reduced somewhat.”
Instead of eroding sovereignty, he said, properly structured stablecoins can expand it.
For commercial banks, the concern is that if consumers hold funds in stablecoins instead of depositing them, they may lose their ability to lend.
MacKenzie rejected that premise. “I don’t think that’s a valid argument. What it really brings to the table is that banks need to become more competitive.”
Credit would not disappear, he added, but could shift to alternative providers if the established banks do not adapt. In that sense, stablecoins can increase competition in financial services rather than decrease credit availability.
British banks shift from skepticism to acceleration
Bankers in the UK are paying more attention to cryptocurrency projects, MacKenzie said. Conversations have escalated up the hierarchy.
“It’s now a C-suite conversation,” he said. “There is an exponential acceleration to the adoption of blockchain technology by banks.”
Banks are increasingly recognizing efficiencies in programmable reconciliation, instant settlement and cross-border interoperability, he said. While the transition may take decades, as it did with the shift to digital banking, momentum is building.
“The banks themselves have expressed that they see this as a 30-year transition.”
If the UK intends to compete with faster moving jurisdictions in Europe, the Middle East and Asia, time may prove to be the most critical variable.
Whether Britain can translate ambition into leadership may depend less on legislative design and more on how quickly politicians move.
“Zoom out and look at the macro,” MacKenzie said. “Nothing is set in stone.”
