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 pledged to position London as a center of global activity in crypto and digital assets. However, comprehensive legislation governing stablecoins and broader crypto activity is only expected to be approved by Parliament later this year and will not come into force until 2027.
MacKenzie said this timetable contradicts the government’s goal of remaining globally competitive within the industry.
“I think the most damaging thing today was the time it took to get to where we are,” MacKenzie said in an interview with Consensus Hong Kong. “People just want clarity… If there’s anything I’d like to see from regulators, it’s just an acceleration of the pace at which we can do things.”
The London-based company recently joined the small group of crypto-asset businesses registered with the Financial Conduct Authority (FCA) under the Anti-Money Laundering Regulations, an approval process widely considered one of the strictest in the world. FCA registration is a prerequisite for operating certain cryptoasset businesses 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 sterling stablecoin called GBPA, the registration signals institutional intent rather than a retail crypto push. The company has positioned the token as an infrastructure for institutional payments, settlement and tokenized assets.
The company has active dialogues with the Treasury, the FCA and the Bank of England, MacKenzie said, describing the engagement as constructive, but iterative.
“There are some aspects that we don’t like, and we’re very vocal about that,” he said, referring in part to proposed limits under 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 justification.”
Stablecoins as a tool, not a threat
Asked if he sees opposition from 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 stablecoins can strengthen sovereign monetary reach.
“When you see money going down with the central bankers, you realize that this is actually an incredible way for them to export sovereign debt,” he said. By issuing a sterling-pegged stablecoin, companies like Agant could distribute digital books globally, increasing exposure to sterling-denominated assets and potentially reducing funding costs. “We can sell sterling all over the world,” he said. “The cost of carry for the central bank is simply reduced somewhat.”
Rather than eroding sovereignty, he said, properly structured stablecoins can expand it.
For commercial banks, the concern is that if consumers hold funds in stablecoins rather than depositing them, they could lose their ability to lend.
MacKenzie rejected this premise. “I don’t think that’s a valid argument. What it really leads to is that banks need to become more competitive.”
Credit will not disappear, he added, but could shift to alternative providers if incumbent banks fail to adapt. In this sense, stablecoins can increase competition in financial services rather than decrease the availability of credit.
UK banks move from skepticism to acceleration
British bankers are paying more attention to cryptocurrency projects, MacKenzie said. Conversations moved up the hierarchy.
“It’s now a conversation among senior executives,” he said. “There is an exponential acceleration in banks’ adoption of blockchain technology.”
Banks are increasingly recognizing the effectiveness of programmable reconciliation, instant settlement and cross-border interoperability, he said. Even though the transition may take decades, as was the case with the move to digital banking, momentum is building.
“The banks themselves have said they see this as a 30-year transition.”
If the UK intends to compete with faster-moving countries in Europe, the Middle East and Asia, time could prove the most critical variable.
Britain’s ability to turn its ambitions into leadership may depend less on regulatory design than on how quickly policymakers act.
“Zoom out and look at the macro,” MacKenzie said. “Nothing is set in stone.”
