"I think it clearly shows that UKAD does not have the powers it needs and I've been very clear on this," he told The Daily Telegraph. "UKAD currently relies on people's willingness to cooperate. It has no legal authority to compel anyone to speak."
Asked whether he favoured the criminalisation of doping, Collins replied: "I think so. I was very struck by the evidence [former rider] Nicole Cooke gave to the select committee when she said that in those countries where doping is illegal, they have much more effective investigations."
Collins said the entire case had been unsatisfactory. His committee is currently preparing a report into doping in sport, which is due to be published "in the next few weeks".
Team Sky released a statement in the wake of UKAD's announced saying they were "pleased" to see they had not been charged, adding that had always maintained "no wrongdoing".
Collins, though, said Team Sky and British Cycling were both culpable for serious failures in record-keeping, if nothing else.
"This is not an exoneration of anyone," he said. "What's clear from UKAD's statement is if Sky and British Cycling had kept proper medical records, this could have been wrapped up a lot sooner. It is unacceptable. A cloud now hangs over one of our greatest Olympians."
UKAD has spent over 12 months looking into a package which was taken out to Team Sky by a British Cycling coach, Simon Cope, at the request of Dr Richard Freeman, who was then working for both organisations.
UKAD received a tip off that it contained a substance called triamcinolone, which is a glucocorticoid that is prohibited in-competition when administered in certain ways.
It is the same substance for which Wiggins had controversial Therapeutic Use Exemptions on three occasions in his career, the first of which was just prior to the 2011 Tour de France, a few weeks after the 2011 Dauphine.
The incident that UKAD was looking into took place on the final day of the Dauphine in 2011, which would have been considered 'in-competition' for the purposes of anti-doping rules. An injection of triamcinolone at that time without a TUE could have constituted a rule violation.
"I can confirm that UKAD does not intend to issue any anti-doping charges as a result of the investigation into the package," UKAD chief executive Nicole Sapstead said in a statement on Wednesday.
"Our investigation was hampered by a lack of accurate medical records being available at British Cycling. This is a serious concern. As part of their conditions to receive public funding from UK Sport and other Home Country Sports Councils, all sports governing bodies must comply with the UK National Anti-Doping Policy. In this case the matter was further complicated by the crossover between personnel at British Cycling and Team Sky.
"We have written to British Cycling and a copy of this letter has also been sent to UK Sport and Sport England. We have also separately written to Team Sky. Finally, we have referred some information to the GMC, and will cooperate with the GMC as necessary in respect of that information."
British Cycling's newly installed chief executive officer Julie Harrington admitted in a statement that UKAD's findings did not show British Cycling in the best light.
"UKAD's findings represent an organisation and culture that, despite delivering on the world stage, did not meet the high standards that British Cycling today holds itself to," she said. "We note that UKAD have referred information arising from their investigation to the General Medical Council and we offer them our wholehearted cooperation.
"British Cycling have implemented a number of significant changes to the management of our medical services to the Great Britain Cycling Team following a review instigated in March by chair Jonathan Browning, shortly after his appointment. This was an external reviewed by Dr Rod Jaques of the English Institute of Sport and all of his recommendations have been accepted by British Cycling. We welcome Ukad's support for these changes.
"The association between British Cycling and Team Sky has been a positive force for cycling in this country. However, we accept that the relationship between British Cycling and Team Sky developed rapidly and as a result, at times, resulted in the blurring of the boundaries between the two. This led to some failings in the way that processes and people were managed.
"Today, based on our learning together there are clear boundaries and distinctions between our two organisations: no one is simultaneously employed by British Cycling and Team Sky; and we each have our own practices in place for managing athlete records."