UK stablecoin firm warns on slow rules

TLDR

UK stablecoin issuer Agant says Britains crypto rules are advancing too slowly, risking its ambition to be a leading digital asset hub.

1. Agants CEO warns that full UK stablecoin and crypto legislation may not arrive until 2027, potentially pushing innovation overseas.
2. The firm argues that pound?backed stablecoins could strengthen UK monetary sovereignty, but current proposals are viewed as too restrictive.
3. Key milestones include FCA licensing, Bank of England design choices, and parliamentary scrutiny that could still reshape the UK framework.

Deep Dive

1. Agants Warning On UK Rules

Andrew MacKenzie, CEO of sterling stablecoin developer Agant, said the UKs regulatory framework is moving too slowly to support its goal of becoming a global digital asset hub, with comprehensive stablecoin and crypto legislation not expected until 2027. He argues that while engagement with the Treasury, the FCA and the Bank of England is constructive, the overall pace risks leaving Britain behind faster?moving regions in Europe, the Middle East and Asia, where clearer regimes are already in force or close to it. Agant has secured FCA registration under anti?money?laundering rules and plans to launch GBPA, a fully backed pound stablecoin aimed at institutional payments, settlements and tokenized asset infrastructure rather than retail use, positioning itself as a regulated player waiting on a full regime to scale.

2. Why Slow Rules Matter For Stablecoins

MacKenzie warns that prolonged uncertainty will drive stablecoin and tokenization businesses to jurisdictions with clearer rules, undermining the UKs stated crypto hub narrative and reducing domestic control over this infrastructure. He disputes central bank and commercial bank fears that stablecoins are inherently destabilizing, arguing that pound?backed stablecoins could extend UK monetary sovereignty by expanding demand for sterling assets and potentially lowering government funding costs, rather than draining bank deposits. Separate evidence to a UK House of Lords committee has likewise praised stablecoins for cheaper cross?border payments and criticized parts of the proposed UK approach, including Bank of England holding limits and applying full securities?style rules, as potentially killing them as a useful payment product.

3. What To Watch Next In The UK

The FCA is consulting on detailed conduct, consumer protection and oversight rules for crypto firms, with a full cryptoasset regime, including stablecoins, targeted around 2027, and licensing applications opening earlier. The Bank of England is refining its stablecoin oversight and proposed holding limits, and industry feedback, including Agants concerns about caps and operational burdens, could still alter the final shape. Parliamentary scrutiny, such as House of Lords hearings that have recently heard more pro?stablecoin testimony, may push regulators toward a more balanced middle ground between the EUs stricter MiCA model and the looser US patchwork.

Conclusion

A regulated UK pound stablecoin like Agants GBPA depends less on whether rules arrive than on how fast and how balanced they are. Slow, heavy regimes risk pushing high quality issuers to other jurisdictions, while credible, timely rules could let the UK translate its financial?center status into a meaningful role in global stablecoin infrastructure.