The unclear regulatory position of the United Kingdom on digital assets arouses strong criticism of market players, some citing “political procrastination” as a key reason why the country is late both the European Union and the United States in the race to define digital finance.
In a Friday blog article, John Orchard, president, and Lewis McLellan, editor-in-chief of the Digital Monetary Institute of the Official Forum of Monetary and Financial Institutions (OMFIF), an independent reflection group, argued that the United Kingdom had wasted its early advantage in the finance of the distributed Ledger.
The message, entitled “The United Kingdom continues to miss the boat on DLT Finance”, “ said the United Kingdom, formerly planned to define a post-Brexit ordeal stallion for cryptography regulations, continues to “speak not specifically of regulations in the future”.
“In the state, there is a missing date for the” Go-Live “part of the” Financial Conduct Authority “Crypto Roadmap”, although it suggests a certain time after 2026, “wrote Orchard and McLellan.
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The framework of the markets in cryptocurrency markets (MICA) of the European Union is already in force, while the American Senate has recently adopted the guide and the establishment of national innovation for American stablecoins, or Genius Act, a historic bill establishing federal guardrail for stablecoins.
However, the Financial Conduct Authority of the United Kingdom still does not have a confirmed restoration date for its cryptographic regime. “This absence of an achievable framework delays the ability of the United Kingdom to adapt to the possibility that … all of finance goes on the chain,” wrote the authors.
Criticism also focuses on the UK approach to Stablecoins. Unlike the United States, which treats them as separate payment tools under the Act on Engineering, British regulators have grouped them with cryptographic investment assets, a decision that “mystified” the market.
The initial position of the Bank of England has only aggravated concerns. Its project project required that systemic stables are entirely supported by central bank money – a condition that industry players would make the issue commercially non -viable. Although the bank has since started to mitigate this position, it has not yet offered a feasible model.
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Meanwhile, other jurisdictions are making progress. In May, Hong Kong adopted a Stablecoin invoice and quickly developed a tokenization ecosystem through its project overall initiative.
The authors also praised the Virtual Assets Regulatory Authority for Arab Emirates (VARA) to be a dedicated digital regulator, unlike the United Kingdom’s attempt to adapt the institutions inherited to new financial models.
The blog concluded that if the United Kingdom directed Fintech innovation in the 2010s and still benefits from advantages such as its time zone, its language and its legal system, its position is far from secure. “The financial centers come and go,” warned the authors, quickly urging the action of regulators.
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