A new OMFIF blog warns that the UK is losing its early advantage in digital asset regulation due to an unclear regulatory stance, dubbed 'policy procrastination'. The blog, authored by John Orchard and Lewis McLellan, notes that while the European Union has implemented the Markets in Crypto-Assets (MiCA) framework and the US is making progress with the GENIUS Act for stablecoins, the UK lacks a confirmed go-live date for its Financial Conduct Authority's crypto regime, which is projected for after 2026. This uncertainty is preventing the UK from adapting to evolving digital finance trends. Moreover, the UK's approach to stablecoins, combined with its requirement that they be fully backed by central bank money, has confused market participants and raised concerns about viability. Other jurisdictions, like the UAE, are making more significant regulatory advances, putting the UK's status as a financial center at risk if swift action isn't taken by regulators.

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