Agant CEO states that UK cryptocurrency regulations are insufficiently rapid to facilitate global hub aspirations.

Regulatory delays risk blunting Britain’s digital asset push, said Andrew MacKenzie, head of the pound-pegged stablecoin developer.

Agant CEO Andrew MacKenzie indicated that the U.K. must accelerate its implementation of cryptocurrency regulations to maintain its competitive edge. (Olivier Acuna/Modified by Coindesk)

What to know:

• Andrew MacKenzie, CEO of Agant, a developer of sterling stablecoins, asserts that the slow pace of crypto and stablecoin regulations in the U.K. threatens the country’s aspirations to become a leading global digital asset center.
• Agant’s registration with the FCA represents a significant regulatory achievement, positioning its planned GBPA token as a foundation for institutional payments, settlements, and tokenized assets rather than targeting retail markets.
• MacKenzie noted that well-structured stablecoins can enhance monetary sovereignty and stimulate competition within financial services.
• U.K. banks are prioritizing blockchain technology at the executive level, recognizing it as part of a long-term transition.

The U.K.’s framework for crypto regulation is progressing positively, yet it is insufficiently swift to fulfill the nation’s ambitions of establishing itself as a global hub for digital assets, Andrew MacKenzie, CEO of Agant, told CoinDesk.

The government has consistently committed to making London a focal point for international crypto and digital asset activities. However, comprehensive legislation governing stablecoins and broader crypto operations is anticipated to receive parliamentary approval only later this year, with enforcement expected to begin in 2027.

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MacKenzie stated that this timeline is at odds with the government’s objectives of maintaining competitiveness in the sector.

“I believe the most detrimental aspect has been the duration it has taken to reach our current position,” MacKenzie remarked during an interview at Consensus Hong Kong. “Stakeholders are seeking clarity … If there is one thing I wish to see from the regulators, it is a hastening of the processes involved.”

The London-based firm has recently joined the limited number of crypto businesses registered with the Financial Conduct Authority (FCA) under anti-money laundering regulations, a process considered one of the most stringent globally. Registration with the FCA is required for conducting specific crypto activities in the U.K., and the process has gained a reputation for being both rigorous and slow.

A hard-won regulatory milestone

For Agant, which intends to launch a fully backed pound sterling stablecoin named GBPA, this registration indicates an institutional focus rather than a consumer-oriented crypto initiative. The company has framed the token as a foundational element for institutional payments, settlements, and tokenized assets.

MacKenzie mentioned that the company engages in ongoing discussions with the Treasury, the FCA, and the Bank of England, describing these interactions as constructive yet iterative.

“There are certain elements we find unfavorable, and we are quite vocal about them,” he noted, referencing some proposed restrictions within the Bank of England’s framework for stablecoins.

Nevertheless, he expressed that regulators are receptive.

“The most encouraging factor in our conversations with regulators is their willingness to make adjustments when there is legitimate justification,” he stated.

Stablecoins as a tool, not a threat

When asked about whether he perceives the opposition from European central banks and U.S. private banks toward stablecoins as a challenge for the future of his project, MacKenzie dismissed their apprehensions regarding financial stability and competitive fairness, asserting that stablecoins can enhance sovereign monetary reach.

“When central bankers begin to understand the concept, it becomes evident that this is a remarkable method for them to export sovereign debt,” he explained. By issuing a pound-pegged stablecoin, entities like Agant could disseminate digital pounds internationally, increasing the visibility of sterling-denominated assets and potentially reducing funding expenses. “We can sell pounds on a global scale,” he remarked. “This would decrease the cost of carry for the central bank.”

Rather than undermining sovereignty, he posited that well-structured stablecoins can actually extend it.

For commercial banks, the concern is that if consumers choose to hold assets in stablecoins instead of deposits, their capacity to lend may be compromised.

MacKenzie rejected this notion. “I don’t see it as a valid point. What it actually demands is that banks enhance their competitiveness.”

He added that credit would not vanish, but may transition to alternative providers if traditional banks do not adapt. In this regard, stablecoins might foster greater competition in financial services rather than restrict credit availability.

UK banks shift from skepticism to acceleration

According to MacKenzie, bankers in the U.K. are increasingly focusing on cryptocurrency initiatives. Discussions have advanced to higher levels of management.

“It’s now a C-suite conversation,” he stated. “There’s an exponential acceleration in banks’ adoption of blockchain technology.”

Banks are progressively acknowledging the efficiencies presented by programmable reconciliation, immediate settlement, and cross-border interoperability, he noted. Although the transition may span decades, akin to the evolution of digital banking, momentum is gaining.

“The banks themselves have indicated they view this as a 30-year transition.”

If the U.K. aims to compete with jurisdictions in Europe, the Middle East, and Asia that are moving more swiftly, time may emerge as the most crucial factor.

Whether Britain can translate ambition into leadership may rely less on regulatory frameworks and more on the speed at which policymakers act.

“Look at the bigger picture,” MacKenzie advised. “Nothing is predetermined.”