According to a report by Cointelegraph on June 21, Deep Tide TechFlow news indicates that the UK is losing its early advantage in the regulation of digital assets due to "policy procrastination." Experts warn that the country has clearly fallen behind the regulatory pace of the EU and the US. A recent blog post published by the independent think tank Official Monetary and Financial Institutions Forum ( OMFIF ) points out that the UK is wasting its first-mover advantage in the Distributed Ledger financial sector.
John Orchard, Chairman of OMFIF, and Lewis McLellan, Editor of the Digital Currency Institute, criticized in an article titled "The UK Continues to Miss DLT Financial Opportunities" that the "regulatory framework officially launched" section of the UK Financial Conduct Authority ( FCA )'s "crypto roadmap" clearly lacks specific dates, only vaguely mentioning a potential time frame sometime after 2026. This stands in stark contrast to the vision of becoming the "gold standard" for crypto regulation that was expected after Brexit.
In contrast, the EU's regulation of the cryptocurrency market (MiCA) has already come into effect, and the U.S. Senate has also passed the "U.S. Stablecoin Regulatory Framework and Innovation Act" (GENIUS Act), which establishes a federal regulatory framework for stablecoins. Experts point out that the lack of a viable regulatory framework in the UK "hinders its ability to adapt to the possibilities of comprehensive financial on-chain."
The UK's regulatory approach to stablecoins has also been criticized. Unlike the US, which views stablecoins as unique payment instruments, UK regulators categorize them alongside crypto investment assets, a practice that has left the market "confused." The Bank of England's initial stance that systemic stablecoins must be fully backed by central bank funds is seen by industry insiders as rendering issuance commercially unviable. Although the Bank of England has begun to relax this stance, it has not yet provided a viable model.
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The UK encryption regulation is trapped in "policy procrastination," and experts warn that it has fallen behind Europe and the US.
According to a report by Cointelegraph on June 21, Deep Tide TechFlow news indicates that the UK is losing its early advantage in the regulation of digital assets due to "policy procrastination." Experts warn that the country has clearly fallen behind the regulatory pace of the EU and the US. A recent blog post published by the independent think tank Official Monetary and Financial Institutions Forum ( OMFIF ) points out that the UK is wasting its first-mover advantage in the Distributed Ledger financial sector.
John Orchard, Chairman of OMFIF, and Lewis McLellan, Editor of the Digital Currency Institute, criticized in an article titled "The UK Continues to Miss DLT Financial Opportunities" that the "regulatory framework officially launched" section of the UK Financial Conduct Authority ( FCA )'s "crypto roadmap" clearly lacks specific dates, only vaguely mentioning a potential time frame sometime after 2026. This stands in stark contrast to the vision of becoming the "gold standard" for crypto regulation that was expected after Brexit.
In contrast, the EU's regulation of the cryptocurrency market (MiCA) has already come into effect, and the U.S. Senate has also passed the "U.S. Stablecoin Regulatory Framework and Innovation Act" (GENIUS Act), which establishes a federal regulatory framework for stablecoins. Experts point out that the lack of a viable regulatory framework in the UK "hinders its ability to adapt to the possibilities of comprehensive financial on-chain."
The UK's regulatory approach to stablecoins has also been criticized. Unlike the US, which views stablecoins as unique payment instruments, UK regulators categorize them alongside crypto investment assets, a practice that has left the market "confused." The Bank of England's initial stance that systemic stablecoins must be fully backed by central bank funds is seen by industry insiders as rendering issuance commercially unviable. Although the Bank of England has begun to relax this stance, it has not yet provided a viable model.