{"id":13308,"date":"2025-06-21T16:47:34","date_gmt":"2025-06-21T14:47:34","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=13308"},"modified":"2025-06-21T16:47:34","modified_gmt":"2025-06-21T14:47:34","slug":"uk-lags-behind-eu-and-us-in-cryptocurrency-regulations-alert-think-tank","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/06\/21\/uk-lags-behind-eu-and-us-in-cryptocurrency-regulations-alert-think-tank\/","title":{"rendered":"UK Lags Behind EU and US in Cryptocurrency Regulations, Alert Think Tank"},"content":{"rendered":"

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The UK’s ambiguous regulatory position on digital assets is receiving significant criticism from market players, with some attributing \u201cpolicy delay\u201d as a primary factor for the nation lagging behind both the European Union and the US in the initiative to shape digital finance.<\/p>\n

In a blog post<\/a> released on Friday, John Orchard, chairman, and Lewis McLellan, editor of the Digital Monetary Institute at the Official Monetary and Financial Institutions Forum (OMFIF), an independent think tank, contended that the UK has squandered its initial advantage in distributed ledger<\/a> finance.<\/p>\n

The article, titled \u201cThe UK keeps missing the boat on DLT finance,\u201d<\/em> asserted that the UK, previously anticipated to establish a post-Brexit gold standard for crypto regulations, remains focused on \u201cvaguely discussing regulation in the future.\u201d<\/p>\n

\u201cCurrently, there is a date noticeably absent for the \u2018Regime go-live\u2019 aspect of the Financial Conduct Authority\u2019s \u2018Crypto Roadmap,\u2019 but it implies some time after 2026,\u201d Orchard and McLellan noted.<\/p>\n

Related: <\/strong><\/em>UK to become \u2018safe harbor\u2019 for crypto with new draft rules<\/strong><\/em><\/a><\/p>\n

EU and US implement crypto regulations<\/h2>\n

The European Union\u2019s Markets in Crypto-Assets (MiCA)<\/a> framework is already operational, while the US Senate recently approved the Guiding and Establishing National Innovation for US Stablecoins<\/a>, or GENIUS Act, a groundbreaking bill that sets federal regulations for stablecoins.<\/p>\n

Source: Cointelegraph<\/em><\/figcaption><\/figure>\n

Nevertheless, the UK\u2019s Financial Conduct Authority still does not have a confirmed implementation date for its crypto regime. \u201cThis lack of an actionable framework hinders the UK\u2019s ability to adjust to the likelihood that\u2026 all finance is transitioning onchain,\u201d the authors stated.<\/p>\n

The critique further emphasizes the UK\u2019s stance on stablecoins. In contrast to the US, which categorizes them as separate payment instruments under the Genius Act<\/a>, UK regulators have categorized them with crypto investment assets, a decision that has \u201cbewildered\u201d the market.<\/p>\n

The Bank of England\u2019s initial position only amplified concerns. Its draft framework mandated that systemic stablecoins be entirely backed by central bank currency \u2014 a stipulation that industry experts argued would render issuance commercially unfeasible. Although the Bank has started to soften this stance, it has yet to present a viable model.<\/p>\n

Related: <\/strong><\/em>The crypto fund domicile decision: EU or the UK?<\/strong><\/em><\/a><\/p>\n

Jurisdictions proceed with crypto regulations<\/h2>\n

On the other hand, other regions are making advancements. In May, Hong Kong approved a stablecoin bill<\/a> and is rapidly fostering a tokenization ecosystem through its Project Ensemble initiative<\/a>.<\/p>\n

The authors also commended the United Arab Emirates\u2019 Virtual Assets Regulatory Authority (VARA) for being a dedicated digital asset regulator<\/a>, contrasting with the UK\u2019s effort to modify traditional institutions for new financial frameworks.<\/p>\n