TechFlow news, June 21 — According to Cointelegraph, the UK is losing its early advantage in digital asset regulation due to "policy procrastination," experts warn, as it clearly lags behind regulatory progress in the EU and the US. A recent blog post by the independent think tank Official Monetary and Financial Institutions Forum (OMFIF) states that the UK is squandering its first-mover advantage in distributed ledger technology (DLT) finance.
John Orchard, Chairman of OMFIF, and Lewis McLellan, editor at the Digital Currency Institute, criticized in an article titled "The UK’s Ongoing Failure to Seize DLT Financial Opportunities" the lack of specific dates for the "formal launch of the regulatory regime" within the Financial Conduct Authority's (FCA) "crypto roadmap," which only vaguely refers to a potential timeframe beyond 2026. This stands in stark contrast to earlier post-Brexit expectations that the UK would become the "gold standard" for crypto regulation.
In comparison, the EU’s Markets in Crypto-Assets Regulation (MiCA) has already taken effect, and the U.S. Senate has passed the GENIUS Act (Guidance on Establishing National Innovation for Ubiquitous Stablecoins), establishing a federal regulatory framework for stablecoins. Experts note that the absence of a viable regulatory framework in the UK "hinders its ability to adapt to the possibility of fully on-chain finance."
The UK’s approach to regulating stablecoins has also drawn criticism. Unlike the U.S., which treats stablecoins as distinct payment instruments, UK regulators classify them alongside crypto investment assets, a move that has left markets "confused." The Bank of England’s initial requirement that systemic stablecoins be fully backed by central bank funds was seen by industry insiders as rendering issuance commercially unviable. Although the Bank of England has begun softening this stance, it has yet to provide a workable model.
