On Thursday, the European Union finished its extensive markets in crypto assets legislation (MiCA), making it the first major jurisdiction to clarify its approach regarding supervision of the sector. The EU’s 27 member states will now be required to adhere to the new regulations. Other jurisdictions, such as the U.K., whose separation from the EU was infamously known as “Brexit”, may feel pressure to implement their own crypto rules.

In a tweet sent on Thursday, London-based lobby group CryptoUK stated that “While not perfect, MiCA is a very relevant regulatory stack which puts significant pressure on U.K.

The EU’s custom MiCA package, which lays out the authorization requirements that member states must enforce for crypto service providers and token issuers, differs from U.K.’s phased approach where different regulators set out their requirements.

The Financial Services and Markets Bill, which is currently going through Parliament in the U.K., contains provisions that regulate crypto as financial products and stablecoins for payments. In February, a consultation published on possible regulations in the sector proposed broad consumer protection laws.

The U.K. Treasury’s Economic Secretary Andrew Griffith said to CNBC on Monday that the government hoped to pass legislation governing cryptography in within the next year.

The U.K., however, is already lagging behind the EU when it comes to setting up rules for the crypto industry. This could be a major factor for U.K. policymakers, according to industry lobby groups.

CryptoUK stated that “with the adoption of MiCA the EU has cemented its position as the regulatory leader for many years to come.”

The U.K. also looks to MiCA as an inspiration.

Gwyneth nurse, director of financial services for the Treasury, stated at Innovate Finance’s annual Global Summit, in April, that there are “aspects of [MiCA] that are interesting and which I think everyone likes, so we have factored in our paper.” She was referring to the U.K.’s consultation on crypto regulations.

In the U.K. consultation, policymakers said they were considering a authorisation regime that was similar to MiCA. The EU has also allowed for significant rulemaking in relation to asset-backed stablecoins. However, the U.K. wants to regulate these coins as payments. The U.K. crypto proposals diverge from MiCA in that they leave out areas like settlement and financial advice.

It may be that the EU has a clearer approach to crypto regulation than the U.K., due to its ability to finalize and clarify their position. In an email, Rhiannon Butterfield said that the U.K. approach is characterized by “uncertainty” because no rules have been released.

Butterfield stated that many of the crypto firms with whom she spoke valued the U.K.’s phased approach, because it built on existing financial regulations.

Nurse, speaking at the Innovate Finance Conference, said that the U.K. has a strategy which allows it to be more flexible in adapting to crypto.

Riccardo Ricchi is the head of government relations and policy at the Payments association in London.

Ricchi says it’s unlikely that the U.K. would try to accelerate its efforts now to regulate the crypto industry.

Read more: EU Crypto Industry Applauds MiCA, But Looks at What’s Next

Sandali Handagama is the editor.