UK’s Delay in Crypto Regulation Raises Concerns
The United Kingdom risks falling behind global counterparts due to its slow progress on crypto regulations, according to analysis by the Official Monetary and Financial Institutions Forum (OMFIF). Experts John Orchard and Lewis McLellan note the UK’s ‘policy procrastination’ contrasts sharply with the European Union‘s implemented MiCA framework and the United States‘ recent GENIUS Act for stablecoins.
Global Regulatory Progress Leaves UK Behind
While other jurisdictions advance, the UK’s Financial Conduct Authority has yet to establish a clear timeline for its crypto framework. This regulatory gap comes as Hong Kong implements new stablecoin rules and the UAE develops its digital asset ecosystem through dedicated regulation.
Stablecoin Classification Creates Confusion
The UK’s treatment of stablecoins as investment assets rather than payment tools – unlike the US approach – has generated market uncertainty. Initial proposals from the Bank of England requiring full central bank backing for systemic stablecoins faced industry pushback for being commercially unworkable.
Urgent Action Needed to Maintain Competitiveness
Despite advantages including its established legal system and historical fintech leadership, the UK must accelerate regulatory development to remain a global digital finance hub. As the OMFIF analysts warn: ‘Financial centers come and go’ without proactive policy measures.
