Andrew McKenzie, CEO of Sterling stablecoin developer Agent, told CoinDesk that 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.
The government has repeatedly promised to establish London as a hub of global crypto and digital asset activity. However, comprehensive legislation governing stablecoins and broader crypto activity is expected to be approved by parliament later this year and will not come into effect until 2027.
McKenzie said this deadline is contrary to the government’s goal of remaining globally competitive within the industry.
“I think the thing that hurts the most today is the time it took to get to where we are now,” McKenzie said in an interview at 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 speed with which we can operate.”
The London-based company recently joined the small group of cryptoasset businesses registered with the Financial Conduct Authority (FCA) under anti-money laundering rules, an approval process widely considered one of the most rigorous globally. FCA registration is a prerequisite for conducting certain cryptoasset activities in the UK, and the process has earned a reputation for being both imprecise and slow.
Regulatory milestone achieved through hard work
For Agant, which plans to issue a fully backed pound sterling stablecoin called GBPA, the registration signals institutional intent rather than a retail crypto push. The company has positioned the token as the infrastructure for institutional payments, settlements and tokenized assets.
The company maintains active dialogue with the Treasury, the FCA and the Bank of England, McKenzie said, describing the engagement as constructive, but iterative.
“There are some aspects that we don’t like, and we’re very vocal about them,” he said, partly referring to proposed limits within 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 the right justification.”
Stablecoins as a tool, not a threat
Asked whether he sees opposition to stablecoins by European central banks and US private banks as a problem for the future of his project, McKenzie dismissed their concerns over financial stability and unfair competition, saying that stablecoins could strengthen sovereign monetary access.
“When you see the central bankers defunding money, you realize it’s actually a wonderful way for them to export sovereign debt,” he said. By issuing a pound-pegged stablecoin, companies like Agant could distribute the digital pound globally, increasing exposure to sterling-denominated assets and potentially reducing funding costs. “We can go globally and sell pounds,” he said. “The carrying costs for the central bank have gone down somewhat.”
Instead of destroying sovereignty, properly structured stablecoins could enhance it, he said.
For commercial banks, the concern is that if consumers keep money in stablecoins instead of deposits, they may lose their ability to lend.
McKenzie rejected that premise. “I don’t think that’s a valid argument. What it really boils down to is that banks need to become more competitive.”
Credit will not disappear, he said, but could shift to alternative providers if existing banks fail to adapt. In that sense, stablecoins could increase competition in financial services rather than reduce credit availability.
UK banks shifting from skepticism to bullishness
McKenzie said bankers in the UK are paying close attention to cryptocurrency projects. The conversation has escalated the hierarchy.
“This is a C-suite conversation now,” he said. “The adoption of blockchain technology by banks has increased rapidly.”
He said banks are increasingly recognizing the efficiencies in programmable solutions, instant settlements and cross-border interoperability. Even if change may take decades, as was the case with the shift to digital banking, the pace is increasing.
“The banks themselves have expressed that they see this as a 30-year transition.”
If the UK intends to compete with fast-moving jurisdictions in Europe, the Middle East and Asia, timing may prove to be the most critical variable.
Whether the UK can translate ambition into leadership may depend less on regulatory design and more on how quickly policymakers move.
“Zoom out and look at the macro,” McKenzie said. “Nothing is set in stone.”