Representatives of the private‐sector fintech community in the United Kingdom are intensifying calls for regulators to accelerate the introduction of legislation governing crypto-assets, including stablecoins. During a panel at a London conference organised by Innovate Finance, UK policy lead Laura Navaratnam warned that the regulatory window is narrow: “I reckon we … have maybe three months to get this right.”
Her remarks reflect mounting frustration within the industry at the pace of UK regulatory action, especially when compared to major markets such as the US, the Markets in Crypto‑Assets Regulation (MiCAR) in the EU and regulation in Singapore.
The UK Government and its regulators have moved forward in drafting a framework for crypto-asset regulation. For example, the draft statutory instrument published by HM Treasury on 29 April 2025 sets out new regulated activities for cryptoassets, including issuance of qualifying stablecoins. Nonetheless, many industry stakeholders feel the implementation timetable remains too slow.
Industry pressure: “Stay or go?” dilemma
During the panel discussion, Andrew MacKenzie, chief executive of UK-domiciled stablecoin issuer aspirant Agant, pointed to the competitive disadvantage facing the UK. He noted that jurisdictions such as Singapore and Abu Dhabi are perceived to be ahead, while the UK is now “further down” the line in regulatory readiness.
Yet he added an upbeat note: the UK can learn from other markets’ mistakes and now has the opportunity to deliver a high-quality regime. He stressed that regulators must create a compelling reason for stablecoin firms to base operations in the UK: “London is the global home of money movement … there needs to be a reason for us to do business here because, at the moment, you’re alienating and driving firms away.”
Echoing similar concerns, Charles McManus, co-founder of ClearBank and co-chair of the Unicorn Council at Innovate Finance, warned that the UK’s “pre-eminence” in financial services is under threat unless regulators accelerate execution and alignment of policy.
Regulatory contours: what’s on the table
The draft legislation published by the Treasury outlines new regulated activities including: issuance of a qualifying stablecoin in the UK, operating a cryptoasset trading platform, dealing in cryptoassets as principal or agent, arranging cryptoasset transactions, and safeguarding cryptoassets. The Financial Conduct Authority (FCA) has already published consultation papers (such as CP25/14 and CP25/15) on stablecoin issuance, crypto-asset custody and prudential requirements.
However, one key omission in the UK’s current draft regime is that UK-issued stablecoins are not yet regulated under the Payments Services Regulations 2017 for payments use-cases. In other words: stablecoins can be used in payments in the UK, but their payment use remains outside the defined regulated perimeter—for now.
Legal advisor Natalie Lewis cautioned that the industry remains “very far away from certainty and harmonisation across borders,” pointing to the lack of conflict-of-laws rules and the absence of an established financial collateral regime to allow stablecoins to be accepted as collateral in capital markets.
Balancing speed and quality: the regulatory trade-off
Navaratnam posed a critical question: “What is actually the goal here?” She warned that regulation which is overly prescriptive, or delivered too slowly, could push firms to locate elsewhere — resulting in regulation that protects neither consumers nor market stability. She reiterated her timeframe: they have “maybe three months … and ‘something’ is absolutely not better than ‘nothing’.”
MacKenzie added that regulation should be “an enabler not a disabler.” He urged adoption of a mindset that recognises that stablecoins and “crypto” broadly are different: stablecoins are rails for future infrastructure while other crypto-assets reside in a different ecosystem.
On specific design issues, Navaratnam noted that the US GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act) disallows yield on stablecoins while emphasising timely redemption, but she argued the UK must tailor its regime to local conditions (for example, settlement cycles).
Global context: other jurisdictions moving ahead
The United States signed the GENIUS Act in July 2025, described by the White House as a “historic piece of legislation that will pave the way for the United States to lead the global digital currency revolution.” The EU’s MiCAR regulation entered into full force in December 2024. In the UK, more modest and incremental progress is being made. The UK Parliament and the FCA are moving ahead, but industry insiders say regulatory certainty remains elusive and what matters now is delivery and implementation rather than announcements.
Why it matters for the UK fintech ecosystem
The speed and clarity of regulation matter because:
1.Stablecoin issuance and adoption could anchor the UK’s position as a global hub for financial innovation, especially given London’s established payments infrastructure and international connectivity.
2.Without a clear regime, UK-based fintechs may relocate to jurisdictions with more advanced stablecoin frameworks, eroding the UK’s competitive edge.
3.Investors and firms may hold back deployment of new infrastructure and stablecoin-enabled applications until regulatory certainty is achieved, which could slow innovation in payments, tokenised assets and global money-movement rails.
4.For consumers and market integrity, a robust framework is required to safeguard against financial crime, operational risk, consumer harm, and to integrate stablecoins into the broader regulated financial system.
Key takeaway: UK at a crossroads
The UK fintech sector is signalling that time is of the essence. With firms pushing for regulatory clarity within months, the UK regulators and Government face a clear choice: deliver an effective, well-designed stablecoin regime that keeps the UK competitive — or risk lagging behind faster-moving jurisdictions and losing financial innovation momentum.
